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Bring Back our Light: Power Outages and Industrial Performance in Sub-Saharan Africa

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  • Mensah, Justice Tei

Abstract

Power cuts have become a characteristic feature of many Sub-Saharan African economies. This paper attempts to estimate the firm level impact of power out- ages using panel data on firms from 15 Sub-Saharan African countries. Further, I evaluate the impact of electricity self-generation in ameliorating the effects of power outages on firm performance using a quasi-experimental approach. Results from the analysis reveal significant negative effects of electricity short- ages on firm productivity, size and labor employment. Finally, contrary to the notion that self-generation may be helpful for firms during outage periods, evidence from this paper suggest that reliance on self-generation is associated with productivity losses albeit short run revenue gains.

Suggested Citation

  • Mensah, Justice Tei, 2016. "Bring Back our Light: Power Outages and Industrial Performance in Sub-Saharan Africa," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236587, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:236587
    DOI: 10.22004/ag.econ.236587
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    Cited by:

    1. Adewuyi, Adeolu & Emmanuel, Zachariah, 2018. "Electricity Outages and Firm Performance Across the Six Geo-Political Zones in Nigeria: The Role of Corruption," MPRA Paper 92089, University Library of Munich, Germany, revised 03 Feb 2019.
    2. Christopher Ksoll & Kristine Bos & Sarah Hughes & Anthony Harris & Arif Mamun, "undated". "Evaluation Design Report for the Benin Power Compact's Electricity Generation Project and Electricity Distribution Project," Mathematica Policy Research Reports 9f8974513ee745aaac3b5c62e, Mathematica Policy Research.
    3. Rabia Asif & Muhammad Fiaz & Zunaina Zulfiqar, 2022. "The Impact of Sustainable Energy on Liquidity and Financial Performance of the Textile Industry," SAGE Open, , vol. 12(4), pages 21582440221, December.
    4. Imandojemu Kingsley & Joseph E. Tonuchi, 2021. "Contribution to the Empirics of Electricity Blackouts and Productivity in Nigeria," Energy Economics Letters, Asian Economic and Social Society, vol. 8(1), pages 60-69, June.
    5. Duncan Chaplin & Delia Welsh & Arif Mamun & Nick Ingwersen & Kristine Bos & Erin Crossett & Poonam Ravindranath & Dara Bernstein & William Derbyshire, "undated". "Ghana Power Compact: Evaluation Design Report," Mathematica Policy Research Reports 8c1896c6f9af45f08347287c1, Mathematica Policy Research.
    6. Boyan Zhang & Mingming Wang, 2021. "How Will the Improvements of Electricity Supply Quality in Poor Regions Reduce the Regional Economic Gaps? A Case Study of China," Energies, MDPI, vol. 14(12), pages 1-18, June.
    7. Florian Morvillier, 2020. "Infrastructures and the real exchange rate," EconomiX Working Papers 2020-26, University of Paris Nanterre, EconomiX.
    8. Elliott, Robert J.R. & Nguyen-Tien, Viet & Strobl, Eric A., 2021. "Power outages and firm performance: A hydro-IV approach for a single electricity grid," Energy Economics, Elsevier, vol. 103(C).
    9. Adewuyi, Adeolu & Emmanuel, Zachariah, 2018. "Electricity Outages and Firm Performance Across the Six Geo-Political Zones in Nigeria: The Role of Corruption," MPRA Paper 92091, University Library of Munich, Germany, revised 04 Feb 2019.
    10. Cyprian Amutabi & Anthony Wambugu, 2020. "Determinants of labor productivity among SMEs and large‐sized private service firms in Kenya," African Development Review, African Development Bank, vol. 32(4), pages 591-604, December.
    11. Chapel, Capucine, 2022. "Impact of official development assistance projects for renewable energy on electrification in sub-Saharan Africa," World Development, Elsevier, vol. 152(C).

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    Keywords

    Productivity Analysis; Resource /Energy Economics and Policy;

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