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The determinants of electricity constraints by firms in developing countries

Author

Listed:
  • Elizabeth Asiedu
  • Théophile Azomahou
  • Neepa Gaekwad
  • Mahamady Ouedraogo

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

We employ survey data for 108 developing countries over the period 2006–2017 and estimate an ordered probit model to determine the firm and country characteristics that affect the probability that a firm is energy poor—i.e., the firm will report that electricity is an obstacle to the firm's operations. We find that firms that experienced power outages and firms in the manufacturing industry are more likely to be energy poor. In contrast, majority-owned government firms and older firms are less likely to be energy poor. The gender of the firm owner and the size of the firm are not correlated with firm energy poverty. Among firms that experienced power outages, firm energy poverty increases with the frequency as well as the duration of outages. We also find that firms that operate in countries with weak institutions and in countries where residents have limited access to electricity are more likely to be energy poor.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Elizabeth Asiedu & Théophile Azomahou & Neepa Gaekwad & Mahamady Ouedraogo, 2021. "The determinants of electricity constraints by firms in developing countries," Post-Print hal-03384551, HAL.
    • Handle: RePEc:hal:journl:hal-03384551
    DOI: 10.1016/j.eneco.2021.105605
    Note: View the original document on HAL open archive server: https://hal.science/hal-03384551v1
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    Cited by:

    1. Apeti,Ablam Estel & Ly,Alpha, 2023. "Power Constraints and Firm-Level Total Factor Productivity in Developing Countries," Policy Research Working Paper Series 10510, The World Bank.
    2. Guo, Dongmei & Li, Qin & Liu, Peng & Shi, Xunpeng & Yu, Jian, 2023. "Power shortage and firm performance: Evidence from a Chinese city power shortage index," Energy Economics, Elsevier, vol. 119(C).
    3. Apeti, Ablam Estel & Ly, Alpha, 2024. "Power constraints and firm-level total factor productivity in developing countries," Energy, Elsevier, vol. 309(C).
    4. 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).
    5. Yu, Jian & Liu, Peng & Fu, Dahai & Shi, Xunpeng, 2023. "How do power shortages affect CO2 emission intensity? Firm-level evidence from China," Energy, Elsevier, vol. 282(C).

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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