Using machine learning to assess the livelihood impact of electricity access

Abstract

In many regions of the world, sparse data on key economic outcomes inhibit the development, targeting and evaluation of public policy^1,2. We demonstrate how advancements in satellite imagery and machine learning (ML) can help ameliorate these data and inference challenges. In the context of an expansion of the electrical grid across Uganda, we show how a combination of satellite imagery and computer vision can be used to develop local-level livelihood measurements appropriate for inferring the causal impact of electricity access on livelihoods. We then show how ML-based inference techniques deliver more reliable estimates of the causal impact of electrification than traditional alternatives when applied to these data. We estimate that grid access improves village-level asset wealth in rural Uganda by up to 0.15 standard deviations, more than doubling the growth rate during our study period relative to untreated areas. Our results provide country-scale evidence on the impact of grid-based infrastructure investment and our methods provide a low-cost, generalizable approach to future policy evaluation in data-sparse environments.