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Does country-risk influence electricity production worldwide?

Tiago Sequeira () and Marcelo Santos ()

Journal of Policy Modeling, 2018, vol. 40, issue 4, 730-746

Abstract: This paper investigates the relationship between country-risks (or conflicts) within countries and electricity production. The determinants of electricity production have been neglected in the literature that favours the relationship between energy consumption, growth and development, and despite of the major challenges on electricity supply systems. We empirically establish that weighted conflict index, as well as sub-items as anti-government demonstrations, government crises and riots negatively influence electricity production per capita, after controlling for income per capita. Country conflicts affect electricity production mostly in the long-run. Our results imply that conflicts may affect electricity production substantially and consequently the economy as a whole. Policy should emphasize the institutional framework to avoid conflicts within countries in order to secure electricity production.

Keywords: Electricity production; Income; Conflicts; Country-risk; Institutions (search for similar items in EconPapers)
JEL-codes: Q43 O17 O50 (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:eee:jpolmo:v:40:y:2018:i:4:p:730-746