Losing to Blackouts: Evidence from Firm Level Data
IMF Working Papers, July 10, 2018
Source details
- Canonical URL
- Losing to Blackouts: Evidence from Firm Level Data
Other formats
Bibliographic details
- Authors: Daniel Gurara, Dawit Tessema
- Published: July 10, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484363973.001
Key findings
- Many developing economies are often hit by electricity crises either because of supply constraints or lacking in broader energy market reforms.
- Using manufacturing firm census data from Ethiopia, the study identifies productivity losses attributable to power disruptions.
- Estimated productivity losses from power disruptions, on average, are about 4–10 percent.
- Nonlinear productivity losses are observed across quantiles of the productivity distribution.
- Firms at higher quantiles faced higher losses compared to firms around the median.
- The study observed patterns of systematic shutdowns as firms attempt to minimize losses.
Data and scope
- Country focus: Ethiopia
- Data source: manufacturing firm census data (panel data implied)
- Subject tags: Capacity utilization; Commodities; Electricity; Labor productivity; Production; Productivity; Total factor productivity
- Keywords: Africa; Capacity utilization; Electricity; firm age; firms shutdown; grid-power consumption; Labor productivity; panel data; Power disruption; production function; Productivity; productivity loss; productivity shock; Shutdowns; state utility company; Sub-Saharan Africa; time index; Total factor productivity; WP
Policy-relevant implications (as stated in source)
- Electricity crises in developing economies arise from supply constraints or from lacking broader energy market reforms.
- Systematic firm shutdowns occur as an adjustment to power disruptions, implying costs to production and productivity.
- Addressing supply constraints and pursuing broader energy market reforms are implicated as ways to mitigate productivity losses from blackouts.
IMF Working Paper: "Losing to Blackouts: Evidence from Firm Level Data" by Daniel Gurara and Dawit Tessema, July 10, 2018.
Content in this bundle
- Losing to Blackouts: Evidence from Firm Level Data, WP/18/159, July 2018