The Electrification’s Long-term Effects on Local Politics: Evidence from Brazil

• In Event: Clientelism and Political Behavior

Abstract

The lack of electricity is a reality for many households across the world, especially in developing countries where around 1 billion people live without this basic service. There is an ongoing debate on how the electricity provision affects the development. In this paper, we exploit the political implications of a large-scale electrification program in rural areas in Brazil. The evidence shows electricity provision long-term effects on mayoral elections in treated municipalities. In these places, we document a substantive decrease of powerful local elites (political dynasties) electoral support. We provide evidence that this result is driven by the increase of voters' access to information (more formal education and access to information via TV and internet) that allows them to select better politicians and punish corrupt ones. The results hold across both short and long-term elections. Also, we find no evidence in favor of credible alternative explanations based on the diminishing returns logic.

Authors

• Victor Araújo, University of Zurich

• Pablo Beramendi, Duke University