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The Direct and Indirect Costs of Power Outages to Small Scale Manufacturing Industries of Punjab

Author

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  • Abbas, Malaika

Abstract

The paper quantifies the various costs incurred due to power outages in Punjab by the small scale manufacturing sector. The previous studies that calculated the cost of power outrages have focused at a national level only. The type of costs identified are: Direct Costs like spoilage cost and value of output loss and Adjustment Costs like inbuilt power generation costs (capital cost, fuel cost, operation and maintenance costs of generators etc.) and costs of other adjustments. The methodology used for quantifying the cost of outages is based largely on Pasha, et al. (1989). In conclusion, the paper estimates that the total outage cost for small scale industry of Punjab for 2012 is almost Rs. 21 billion which accounts for 12.4 percent of small scale manufacturing value added. Policy recommendations are made to mitigate the impact of load shedding.

Suggested Citation

  • Abbas, Malaika, 2016. "The Direct and Indirect Costs of Power Outages to Small Scale Manufacturing Industries of Punjab," MPRA Paper 81264, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:81264
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    References listed on IDEAS

    as
    1. Zahid Ashraf & Attiya Yasmin Javid & Muhammad Javid, 2013. "Electricity consumption and economic growth: evidence from Pakistan," Economics and Business Letters, Oviedo University Press, vol. 2(1), pages 21-32.
    2. Rehana Siddiqui & Hafiz Hanzla Jalil & Muhammad Nasir & Wasim Shahid Malik & Mahmood Khalid, 2008. "The Cost of Unserved Energy: Evidence from Selected Industrial Cities of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(3), pages 227-246.
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    Cited by:

    1. Remy Tehero & Emmanuel Brou Aka & Murat Cokgezen, 2020. "Drivers of the Quality of Electricity Supply," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 183-195.

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    More about this item

    Keywords

    Punjab Power outages Direct Costs Adjustment Costs Small Scale Manufacturing;

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • H4 - Public Economics - - Publicly Provided Goods
    • P41 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Planning, Coordination, and Reform
    • P42 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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