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Power outages and economic growth in Africa

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Abstract

This paper estimates the total effect of power outages on economic growth in Sub-Saharan Africa over the period 1995-2007. Outages are instrumented using a satellite-based measure of lightning density. As suggested by Henderson et al. (2011), we also combine Penn World Tables GDP data with satellite-based data on nightlights to arrive at a more accurate measure of economic growth. Our results suggest that the annual economic growth drag of a weak power infrastructure is about 2 percentage points.

Suggested Citation

  • Andersen, Thomas Barnebeck & Dalgaard, Carl-Johan, 2012. "Power outages and economic growth in Africa," Discussion Papers of Business and Economics 7/2012, University of Southern Denmark, Department of Business and Economics.
  • Handle: RePEc:hhs:sdueko:2012_007
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    1. Hanousek, Jan & Hajkova, Dana & Filer, Randall K., 2008. "A rise by any other name? Sensitivity of growth regressions to data source," Journal of Macroeconomics, Elsevier, vol. 30(3), pages 1188-1206, September.
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    Citations

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    Cited by:

    1. Thomas Barnebeck Andersen & Peter Sandholt Jensen, 2014. "Is Africa's Recent Growth Sustainable?," International Economic Journal, Taylor & Francis Journals, vol. 28(2), pages 207-223, June.
    2. Pless, Jacquelyn & Fell, Harrison, 2017. "Bribes, bureaucracies, and blackouts: Towards understanding how corruption at the firm level impacts electricity reliability," Resource and Energy Economics, Elsevier, vol. 47(C), pages 36-55.
    3. Oseni, Musiliu O. & Pollitt, Michael G., 2015. "A firm-level analysis of outage loss differentials and self-generation: Evidence from African business enterprises," Energy Economics, Elsevier, vol. 52(PB), pages 277-286.
    4. repec:eee:renene:v:115:y:2018:i:c:p:509-520 is not listed on IDEAS
    5. repec:ipg:wpaper:2014-475 is not listed on IDEAS
    6. Agenor, Pierre-Richard & Dinh, Hinh, 2013. "From Imitation to Innovation: Public Policy for Industrial Transformation," World Bank - Economic Premise, The World Bank, issue 115, pages 1-8, May.
    7. Christopher Ksoll & Kristine Bos & Arif Mamun & Anthony Harris & Sarah Hughes, "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.
    8. Agenor, Pierre-Richard & Dinh, Hinh T., 2013. "Public policy and industrial transformation in the process of development," Policy Research Working Paper Series 6405, The World Bank.
    9. Co, Catherine Y., 2014. "Supply-side constraints, capital goods imports, and the quality of Sub-Saharan African countries exports," WIDER Working Paper Series 142, World Institute for Development Economic Research (UNU-WIDER).
    10. repec:gam:jeners:v:10:y:2017:i:11:p:1899-:d:119446 is not listed on IDEAS
    11. Arouri, Mohamed El Hedi & Ben Youssef, Adel & M'henni, Hatem & Rault, Christophe, 2014. "Exploring the Causality Links between Energy and Employment in African Countries," IZA Discussion Papers 8296, Institute for the Study of Labor (IZA).
    12. Ben Ammar, Semir & Eling, Martin, 2015. "Common risk factors of infrastructure investments," Energy Economics, Elsevier, vol. 49(C), pages 257-273.
    13. Agénor, Pierre-Richard, 2016. "Optimal fiscal management of commodity price shocks," Journal of Development Economics, Elsevier, vol. 122(C), pages 183-196.
    14. repec:eee:juipol:v:52:y:2018:i:c:p:88-94 is not listed on IDEAS
    15. Kashi, Bahman, 2015. "Risk management and the stated investment costs by independent power producers," Energy Economics, Elsevier, vol. 49(C), pages 660-668.
    16. Bahman Kashi, 2014. "Risk Management and the Stated Capital Costs by Independent Power Producers," Development Discussion Papers 2014-03, JDI Executive Programs.
    17. Salahodjaev, Raufhon, 2017. "Government size, intelligence and life satisfaction," MPRA Paper 76902, University Library of Munich, Germany.
    18. Carlsson, Fredrik & Demeke, Eyoual & Martinsson, Peter & Tesemma, Tewodros, 2018. "Cost of Power Outages for Manufacturing Firms in Ethiopia: A Stated Preference Study," Working Papers in Economics 731, University of Gothenburg, Department of Economics.

    More about this item

    Keywords

    Economic growth; public utilities; electricity; earthlights; Africa;

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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