{
  "title": "Losing to Blackouts: Evidence from Firm Level Data",
  "publication": "IMF Working Papers, July 10, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2018/07/10/losing-to-blackouts-evidence-from-firm-level-data-46032",
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  "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.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Many developing economies are often hit by electricity crises either because of supply constraints or lacking in broader energy market reforms.\n- Using manufacturing firm census data from Ethiopia, the study identifies productivity losses attributable to power disruptions.\n- Estimated productivity losses from power disruptions, on average, are about 4–10 percent.\n- Nonlinear productivity losses are observed across quantiles of the productivity distribution.\n  - Firms at higher quantiles faced higher losses compared to firms around the median.\n- The study observed patterns of systematic shutdowns as firms attempt to minimize losses."
    },
    {
      "heading": "Data and scope",
      "content": "- Country focus: Ethiopia\n- Data source: manufacturing firm census data (panel data implied)\n- Subject tags: Capacity utilization; Commodities; Electricity; Labor productivity; Production; Productivity; Total factor productivity\n- 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"
    },
    {
      "heading": "Policy-relevant implications (as stated in source)",
      "content": "- Electricity crises in developing economies arise from supply constraints or from lacking broader energy market reforms.\n- Systematic firm shutdowns occur as an adjustment to power disruptions, implying costs to production and productivity.\n- Addressing supply constraints and pursuing broader energy market reforms are implicated as ways to mitigate productivity losses from blackouts.\n\nIMF Working Paper: \"Losing to Blackouts: Evidence from Firm Level Data\" by Daniel Gurara and Dawit Tessema, July 10, 2018.\n\n---\n\n Content in this bundle\n\n- Losing to Blackouts: Evidence from Firm Level Data, WP/18/159, July 2018\n  - Losing to Blackouts: Evidence from Firm Level Data, WP/18/159, July 2018 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Losing to Blackouts: Evidence from Firm Level Data, WP/18/159, July 2018 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2018/07/10/losing-to-blackouts-evidence-from-firm-level-data-46032"
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    "Authors: Daniel Gurara, Dawit Tessema",
    "Published: July 10, 2018",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484363973.001",
    "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.",
    "The study observed patterns of systematic shutdowns as firms attempt to minimize losses.",
    "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",
    "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.",
    "**Losing to Blackouts: Evidence from Firm Level Data, WP/18/159, July 2018**"
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