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Electricity theft is a common problem in many countries and energy worth billions of dollars is stolen annually from electricity grids. The problem has socioeconomic, political, environmental and technical roots, but the solution is generally sought solely through technical measures. This paper empirically investigates the effects of various factors including electricity price, per capita income, probability of detection, fines collected from offenders, weighted temperature index and load shedding, that may explain the theft. The study employed annual panel data obtained from nine electricity distribution companies in Pakistan for the period 1988–2010. The study estimates the Fixed Effects models through the least squares dummy variable (LSDV) technique and Generalised Method of Moments (GMM). Our results indicate that per capita income has significant negative and electricity price a positive effect on electricity theft with sufficiently high coefficient values. The probability of detection variable appears with a positive sign in both estimations indicating a poor deterrence. The results of LSDV show a positive impact of fine on conviction on electricity theft. But in GMM estimation, this variable appears with a right sign. The results from both models are robust in the case of load shedding and temperature variables. The findings show that economic variables are most significant in explaining electricity theft. The findings may also be applicable in other developing countries where hefty amounts of revenues are lost due to electricity theft. Keywords: Electricity Theft, Fixed Effects Model, Pakistan

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Rapid urbanization in developing countries leads to a dramatic increase in solid waste production, with serious socio-economic and ecological impacts. In order to avoid the associated hazards, particularly those related to human health and the environment, solid waste management is indispensable. Disposal of municipal waste that predominantly comprises household and commercial refuse has become a daunting task for local governments and municipalities of Pakistan. Issues related to both inadequacy of service delivery and inappropriate disposal signify that waste management should be high on the local environment policy agenda. In particular, the external cost of waste management is high, and cost recovery of refuse collection may cause the exclusion of many households and additional costs on the households that avail themselves of the service. In this study, we carried out an evaluation of the health damage caused by improper waste disposal in a sample of heterogeneous households. The study shows a framework for evaluating the damages caused by inadequate waste management practices. The results indicate that irregular disposal in the vicinity of residents causes illness: respondents living within 100 m are more vulnerable to malaria, dengue, and asthma than those living more than 500 m away. Moreover, the findings highlight that households lack knowledge of waste hazards and 75.9% of waste is not segregated. We suggest a subsidized waste collection and disposal service provided either by the local government or by outsourcing.