Inefficiencies in Public Electricity Provision and Impacts on Firms in Karachi’s Manufacturing Sector
The private costs of electricity supply failures are substantial and inimical to industrial productivity. Using results from a small sample survey of manufacturing firms in Karachi, the study documented the causes, extent and incidence of the failures, identified and classified the firms’ private responses, and estimated the capital share of internally produced power and the associated costs. The results are reported here to engender discussion for developing a policy model of infrastructure provision suited to a developing country like Pakistan. The most encouraging options are those that allow for cooperative provision amongst firms with concurrent reforms in the regulatory and institutional environments. An optimal policy will allow inter-firm trading of electricity making the power market competitive. Those firms that already have extensive private generating capacity due to weak public supply will realise scale economies by selling electric power to lower the costs of private provision. Competition in electricity supply implies that industrial users will find attractive substitutes in the private sector. This will lead to a reduction in the demand on public service, already limited in quantity and quality in key urban-industrial locations like Karachi.
Volume (Year): 38 (1999)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: P.O.Box 1091, Islamabad-44000|
Web page: http://www.pide.org.pk
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
- Kyu Sik Lee & Anas, Alex & Gi-Taik Oh, 1996. "Costs of infrastructure deficiencies in manufacturing in Indonesia, Nigeria, and Thailand," Policy Research Working Paper Series 1604, The World Bank.
- David M. Newbery, 1995. "A Template for Power Reform," World Bank Other Operational Studies 11652, The World Bank.
- Baumol, William J & Lee, Kyu Sik, 1991. "Contestable Markets, Trade, and Development," World Bank Research Observer, World Bank Group, vol. 6(1), pages 1-17, January.
When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:38:y:1999:i:2:p:167-185. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.