How Do Electricity Shortages Affect Industry? Evidence from India

Allcott, Hunt; Collard-Wexler, Allan; O’Connell, Stephen D.

doi:10.3386/w19977

Cited by 16 publications

(9 citation statements)

References 26 publications

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“…Conversely, other studies have shown that intermittent, unreliable electricity, and unexpected outages or surges can hurt firm performance. Power outages cost businesses in terms of lost sales (e.g., Allcott, Collard-Wexler, and O'Connell, 2015;Beenstock, Goldin, and Haitovsky, 1997;Adenikinju, 2005) as well as equipment damage, as documented by Foster and Steinbuks (2009). Alam (2013) provided evidence of heterogeneity in the effect of outages, showing that power outages lower profits and output of some electricity-intensive industries in India, but not across the board.…”

Section: Manuel Barronmentioning

confidence: 99%

Exploring Firm-Level Innovation and Productivity in Developing Countries: The Perspective of Caribbean Small States

Crespi¹,

Dohnert²,

Maffioli³

et al. 2017

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work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (https://creativecommons. org/licenses/by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of the IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.

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Section: Manuel Barronmentioning

confidence: 99%

Exploring Firm-Level Innovation and Productivity in Developing Countries: The Perspective of Caribbean Small States

Crespi¹,

Dohnert²,

Maffioli³

et al. 2017

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“…Electricity access expansion has found to positively impact industrial growth through increases in production levels and in the number of industrial activities (Rud 2012;Peters et al 2011). Quality of electric supply has also been shown to have important impacts on revenues, productivity, investments (Allcott et al 2016;Fisher-Vanden et al 2012;Reinikka and Svensson, 2002).…”

Section: Discussionmentioning

confidence: 99%

Access to Modern Energy: A Review of Barriers, Drivers and Impacts

2016

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Universal access to modern energy services, in terms of access to electricity and to modern cooking facilities, has been recognized as a fundamental challenge for development. Despite strong praise for action and the deployment of large-scale electrification programs and improved cookstove (ICS) distribution campaigns, few studies have shed light on the barriers to, the enablers of and the impacts of access to energy on development outcomes, using rigorous methodologies. This paper reviews this recent strand of research, trying to fill these gaps. We focus on the demand-side and household perspective. Our main outcomes of interest are electricity connection and ICS adoption for the analysis of barriers, time allocation, labour market outcomes and welfare for the impact analysis. We provide evidence of significant wellbeing impacts of electrification, and mixed evidence for cookstoves.JEL classification: O1, O13, Q4, Q48

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“…An unreliable power supply can cause disruptions in the production process that have adverse effects on firm performance and profitability (Fosu, Mlambo, and Oshikoya 2001). In a study of Indian textile firms, Allcott, Collard-Wexler, and O'Connell (2014) found that power outages reduce output by 5 percent. Firms without a generator and small firms experienced higher losses.…”

Section: Firm-level Evidencementioning

confidence: 99%

“…However, using a generator leads to an increase in electricity cost, which enters the profit function as an output tax. Allcott, Collard-Wexler, and O'Connell (2014) note that even if it has a generator, a firm's productivity will be lower due to an input variation effect. On the other hand, firms without a generator experience a shutdown effect, which not only reduces output but also their demand for non-storable inputs.…”

Section: Firm-level Evidencementioning

confidence: 99%

Engine of Growth?: The Caribbean Private Sector Needs More Than an Oil Change

Ruprah¹,

Sierra²

2016

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ative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose.No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Note that link provided above includes additional terms and conditions of the license. to the private sector as a reliable partner to boost economic value added and labour growth. However, this expectation has never been grounded in fact, as there is no empirical study of the Caribbean private sector. Therefore, this study is ground-breaking because it provides a comprehensive empirical analysis of the Caribbean business sector.The report revisits the theme of low Caribbean growth, viewed through a macroeconomic lens in our previous report (Is there a Caribbean Sclerosis?), but takes a microeconomic perspective by using firm-level data.The performance of the private sector is crucial for a country's economic growth and employment generation. As such, the results of the analysis are not comforting.In terms of sales growth, employment growth, efficiency, and total factor productivity, the Caribbean underperforms the rest of the small economies of the world. The gap is larger for commodity-dependent economies (Guyana, Suriname, and Trinidad and Tobago) than for tourism-dependent economies (Barbados, Jamaica, and The Bahamas). Thus, the existing Caribbean business sector is not up to the challenge to increase the region's economic growth and employment and hence, to increase public resources and improve the welfare of citizens in the region.Why? The report uses multiple approaches to identify the constraints to the private sector, constraints include the role of firm characteristics and constraints, including international trade and foreign direct investment, financing, crime, inadequate labour, electricity issues, lack of innovation, gender disparity, and government policies that are not good for business. The study estimates the contribution to the performance gap of the region's existing endowments (i.e., the characteristics and constraints of the firms) as well as the returns to those characteristics and constraints. It finds that the returns contribute more to the gap than do characteristics and constraints themselves.It turns out that fine-tuning the engine that is the private sector, as it were, will take more than an oil change. The Caribbean private sector is falling behind because vi AN ENGINE OF GROWTH? THE CARIBBEAN PRIVATE SECTOR NEEDS MORE THAN AN OIL CHANGEits policy environment hinders rather than promotes dynamic, innovative, and export-oriented b...

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How Do Electricity Shortages Affect Industry? Evidence from India

Cited by 16 publications

References 26 publications

Exploring Firm-Level Innovation and Productivity in Developing Countries: The Perspective of Caribbean Small States

Exploring Firm-Level Innovation and Productivity in Developing Countries: The Perspective of Caribbean Small States

Access to Modern Energy: A Review of Barriers, Drivers and Impacts

Engine of Growth?: The Caribbean Private Sector Needs More Than an Oil Change

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