EconPapers    
Economics at your fingertips  
 

Power outages, economic cost, and firm performance: Evidence from Ethiopia

Lamessa Abdisa

Utilities Policy, 2018, vol. 53, issue C, 111-120

Abstract: The lack of secure and reliable electrical power is a constraint to doing business in developing countries. Industrial firms in developing countries adopt different strategies to cope with deficiencies in electricity supply. This paper employs the World Bank Enterprise Survey data to examine how firms in Ethiopia respond to power outages. The results show that firms in Ethiopia self-generate electricity in response to power outages. Power outages were found to affect firms' productivity negatively, increasing firms' costs by 15% from 2011 to 2015. This effect varied negatively with output level, suggesting that outage is particularly costly for small firms.

Keywords: Power outages; Firm; Self-generation (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0957178717303399
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:53:y:2018:i:c:p:111-120

Access Statistics for this article

Utilities Policy is currently edited by D. Smith

More articles in Utilities Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-11-06
Handle: RePEc:eee:juipol:v:53:y:2018:i:c:p:111-120