Losing to Blackouts: Evidence from Firm Level Data

Author/Editor:

Daniel Gurara ; Dawit Tessema

Publication Date:

July 10, 2018

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Many developing economies are often hit by electricity crises either because of supply constraints or lacking in broader energy market reforms. This study uses manufacturing firm census data from Ethiopia to identify productivity losses attributable to power disruptions. Our estimates show that these disruptions, on average, result in productivity losses of about 4–10 percent. We found nonlinear productivity losses at different quantiles along the productivity distribution. Firms at higher quantiles faced higher losses compared to firms around the median. We observed patterns of systematic shutdowns as firms attempt to minimize losses.

Series:

Working Paper No. 18/159

English

Publication Date:

July 10, 2018

ISBN/ISSN:

9781484363973/1018-5941

Stock No:

WPIEA2018159

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

45

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