Abstract
Modern energy sources are important input factors for human development. Although official estimates indicate that 85% of Indian villages are electrified, fewer than 60% of Indian households actually consume electricity. Until recently, the main policy has been to extend the grid to villages in rural areas in order to emphasise productive uses for agriculture. Today, there is a new emphasis on making sure rural households have access to and adopt electricity. This paper examines the factors that influence household electrification. The analysis shows that household electrification depends on household characteristics, the degree of community electrification, and the quality of electricity supply. Surprisingly, household expenditure and, in particular, the electricity tariff show only a relatively small effect on a household's choice for electricity.
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