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Energy outages, in-house power generators, and capacity utilization: The case of African manufacturing

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  • Zhang, Dengjun
  • Durmaz, Nazif
  • Kagochi, John M.

Abstract

This study evaluates the impact of energy outages and in-house power generators on capacity utilization among approximately 12,000 African firms. Energy outages and in-house power generators are measured by the days that firm experienced energy outages and the share of self-generated electricity as a proportion of total electricity consumed, respectively. We further construct quantile dummies based on outage days and the self-generated electricity share. The estimation results depend on the measurement of these key variables and whether the joint impact of energy outages and in-house power generators is accounted for. For example, only in the model that include outage days, the self-generated electricity share, and the interaction term between them, both outage days and the joint impact are found to be significant. This study provides a comprehensive assessment of the effects of power outages and generator ownership on capacity utilization, offering valuable managerial and policy insights.

Suggested Citation

  • Zhang, Dengjun & Durmaz, Nazif & Kagochi, John M., 2025. "Energy outages, in-house power generators, and capacity utilization: The case of African manufacturing," Energy Economics, Elsevier, vol. 147(C).
    • Handle: RePEc:eee:eneeco:v:147:y:2025:i:c:s0140988325004414
    DOI: 10.1016/j.eneco.2025.108614
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    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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