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Energy outages, in-house power generators, and capacity utilization: The case of African manufacturing

Dengjun Zhang, Nazif Durmaz and John M. Kagochi

Energy Economics, 2025, vol. 147, issue C

Abstract: This study evaluates the impact of energy outages and in-house power generators on capacity utilization among approximately 12,000 African firms. Energy outages and in-house power generators are measured by the days that firm experienced energy outages and the share of self-generated electricity as a proportion of total electricity consumed, respectively. We further construct quantile dummies based on outage days and the self-generated electricity share. The estimation results depend on the measurement of these key variables and whether the joint impact of energy outages and in-house power generators is accounted for. For example, only in the model that include outage days, the self-generated electricity share, and the interaction term between them, both outage days and the joint impact are found to be significant. This study provides a comprehensive assessment of the effects of power outages and generator ownership on capacity utilization, offering valuable managerial and policy insights.

Keywords: Energy; Energy outages; Power generator; Capacity utilization; Manufacturing; Africa (search for similar items in EconPapers)
JEL-codes: D24 O13 O55 Q4 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:147:y:2025:i:c:s0140988325004414

DOI: 10.1016/j.eneco.2025.108614

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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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