Electricity Supply Interruptions and Its Impact on Local Economies

Kris Francisco and Michael Abrigo

No DP 2023-49, Discussion Papers from Philippine Institute for Development Studies

Abstract: Electricity serves as a crucial input to many businesses and household activities. As such, the government has historically focused its efforts on expanding the populations’ access to electricity. By contrast, electricity reliability has received less attention from policymakers despite the economic disruption caused by electricity supply interruptions. This paper seeks to deepen the discussion on electricity reliability in the Philippines by providing empirical evidence on the impact of electricity supply interruptions on local economies. Our results show that frequent electricity supply interruptions lead to lower local government income due to reductions in receipts from economic enterprises, business taxes, and real estate taxes. We also found that, consequently, the local government’s ability to provide services related to housing and community development, as well as labor and employment, is constrained, placing the local population at a disadvantage. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph.

Keywords: electricity reliability; electricity supply interruptions; local economies (search for similar items in EconPapers)
Pages: 24
Date: 2023
New Economics Papers: this item is included in nep-ene, nep-mac, nep-sea and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:phd:dpaper:dp_2023-49

DOI: 10.62986/dp2023.49

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