Losing to Blackouts: Evidence from Firm Level Data

46 Pages Posted: 22 Aug 2018

See all articles by Daniel Gurara

Daniel Gurara

International Monetary Fund (IMF)

Dawit Tessema

International Monetary Fund (IMF)

Date Written: July 2018

Abstract

Many developing economies are often hit by electricity crises either because of supplyconstraints or lacking in broader energy market reforms. This study uses manufacturingfirm census data from Ethiopia to identify productivity losses attributable to powerdisruptions. Our estimates show that these disruptions, on average, result in productivitylosses of about 4-10 percent. We found nonlinear productivity losses at different quantilesalong the productivity distribution. Firms at higher quantiles faced higher losses comparedto firms around the median. We observed patterns of systematic shutdowns as firmsattempt to minimize losses.

Keywords: Power disruption, Productivity loss, Shutdowns, Legal Monopolies and Regulation or Deregulation

JEL Classification: D24, E24, L43

Suggested Citation

Gurara, Daniel and Tessema, Dawit, Losing to Blackouts: Evidence from Firm Level Data (July 2018). Available at SSRN: https://ssrn.com/abstract=3236776 or http://dx.doi.org/10.2139/ssrn.3236776

Daniel Gurara (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Dawit Tessema

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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