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Presented By: Department of Economics

The Distribution of Power: Decentralization and Favoritism in Energy Infrastructure

Susanna Berkouwer, UPenn Wharton

Susanna Berkouwer Headshot Susanna Berkouwer Headshot
Susanna Berkouwer Headshot
Electrification is central to green growth. However, state-owned utilities dominate the electricity sector in many countries, risking political capture and distorted investments. This paper studies nationwide electrification in Kenya, where major democratization and decentralization reforms have advanced political accountability. Pro-government areas received 46% more electrified villages and 35% more household connections than determined by the official non-partisan, pre-existing formula guiding program implementation. Favoritism was driven by national rather than local officials. Despite the success of decentralization in some sectors, central coordination and economies of scale may still expose energy infrastructure to political capture.
Susanna Berkouwer Headshot Susanna Berkouwer Headshot
Susanna Berkouwer Headshot

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