The Cost of Unserved Energy: Evidence from Selected Industrial Cities of Pakistan

Rehana Siddiqui (), Hafiz Jalil (), Muhammad Nasir (), Wasim Malik () and Mahmood Khalid ()

No 2011:75, PIDE-Working Papers from Pakistan Institute of Development Economics

Abstract: This study is an attempt to explore the cost of unserved energy due to power outages in Pakistan that started in 2007. The study is based on a survey conducted for four major industrial cities of Punjab—Gujrat, Faisalabad, Gujranwala, and Sialkot. In addition to quantification of output losses, the effect on employment, cost of production, and delay in supply orders are also examined. The output loss is quantified using two-dimensional analyses, controlling for variations in the duration of outages and in the shift hours. The survey data reveal that employment has not suffered any significant drop due to alternative energy arrangements. These arrangements, nevertheless, have increased the production cost of the firms. Delays in the delivery of supply orders are also due to energy shortage. The study reports that the total industrial output loss varies between 12 percent and 37 percent, with Punjab as the major affected province.

Keywords: Energy Crises; Output Loss; Pakistan (search for similar items in EconPapers)
Pages: 21 pages
Date: 2011
New Economics Papers: this item is included in nep-cwa and nep-ene
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Citations: View citations in EconPapers (24)

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https://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-75.pdf First Version, 2011 (application/pdf)

Related works:
Working Paper: The Cost of Unserved Energy: Evidence from Selected Industrial Cities of Pakistan (2012)
Journal Article: The Cost of Unserved Energy: Evidence from Selected Industrial Cities of Pakistan (2008)
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