Impact Analysis of Sitio-Electrification Program (SEP) on the Socio-Economic Development of Selected Households in Matalom, Leyte

This study investigates the impact of Sitio Electrification Program (SEP) on the socio-economic status of selected households in Matalom, Leyte. The SEP was implemented in 2011 with the aim of boosting the socio-economic development of many powerless villages all over the Philippines. The impact of SEP was quantified using pooled Ordinary Least Squares (OLS) regression applying the difference-in-difference estimation technique. The variables of interest include income, study hours and household assets. Results show that the SEP has no significant influence with income. However, positive relationships are found with the asset index of the households and study hours of the children. These imply that availability of electricity translates to accumulation of more household assets and increases the number hours of children spent studying at night. Although the effect on income is not significant, estimation results show robust increase in household assets. Estimation from the pooled OLS, on average, the study hours have increased by around 14 minutes per day and asset index by more than 2 per household. This research also finds out that the “willingness to connect” among households remains an issue in spite of the subsidies on initial household electrification expenses provided by the program. This issue can limit the positive effects that can be brought by the program. One potential approach to address this issue is through affordable amortization packages given to selected beneficiaries.