ABSTRACT
Infrastructure investments – and electric power investments in particular – have always had an important impact on economic development, and are usually associated with positive externalities (Young 1928; Rosenstein-Rodan 1943; Hirschman 1958). In fact, electric power generation and distribution are strongly related to the expansion of economic activities (especially capital intensive manufacturing industries), as well as to households' welfare. This perception is reinforced in developing countries, which have been making intensive efforts to support higher levels of economic growth and to improve social conditions (Hulten et al. 2006).
