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Losing to Blackouts: Evidence from Firm Level Data
Author:
Daniel Guraranull

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and
Dawit Tessemanull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2018: Issue 159
Language:
English
Publication Date:
10 Jul 2018
DOI:
https://doi.org/10.5089/9781484363973.001
ISBN:
9781484363973
ISSN:
1018-5941
Pages:
45
Keywords:
WP; production function; productivity loss; Power disruption; Shutdowns; time index; productivity shock; firms shutdown; grid-power consumption; firm age; panel data; state utility company; Productivity; Total factor productivity; Electricity; Labor productivity; Capacity utilization; Sub-Saharan Africa; Africa
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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.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2018: Issue 159