Rural Electrification in the Brazilian Amazon

No Environment-Development Tradeoff

Laura Villalobos, Jill Caviglia-Harris, Daniel Harris and Elaine Frey

Abstract

Rural electrification is widely promoted to improve livelihoods, yet its land-use consequences in forest frontiers remain unclear. Using longitudinal household surveys linked to property boundaries and satellite land cover in the Brazilian Amazon, we apply heterogeneity-robust staggered-adoption difference-in-differences. Electrification increases cattle income over the medium term but has no detectable effect on annual property-level deforestation. Income gains appear to reflect herd expansion on existing pasture and a modest refrigerated-milk price premium rather than higher per-animal productivity.

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