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The Cost of Unserved Energy: Evidence from Selected Industrial Cities of Pakistan

Author

Listed:
  • Rehana Siddiqui

    (Pakistan Institute of Development Economics, Islamabad.)

  • Hafiz Hanzla Jalil

    (Pakistan Institute of Development Economics, Islamabad.)

  • Muhammad Nasir

    (Pakistan Institute of Development Economics, Islamabad.)

  • Wasim Shahid Malik

    (Quaid-i-Azam University, Islamabad.)

  • Mahmood Khalid

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

This study is an attempt to explore the cost of unserved energy due to power outages in Pakistan that started in 2007. The study is based on a survey conducted for four major industrial cities of Punjab—Gujrat, Faisalabad, Gujranwala, and Sialkot. In addition to quantification of output losses, the effect on employment, cost of production, and delay in supply orders are also examined. The output loss is quantified using two-dimensional analyses, controlling for variations in the duration of outages and in the shift hours. The survey data reveal that employment has not suffered any significant drop due to alternative energy arrangements. These arrangements, nevertheless, have increased the production cost of the firms. Delays in the delivery of supply orders are also due to energy shortage. The study reports that the total industrial output loss varies between 12 percent and 37 percent, with Punjab as the major affected province.

Suggested Citation

  • Rehana Siddiqui & Hafiz Hanzla Jalil & Muhammad Nasir & Wasim Shahid Malik & Mahmood Khalid, 2011. "The Cost of Unserved Energy: Evidence from Selected Industrial Cities of Pakistan," PIDE-Working Papers 2011:75, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2011:75
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    References listed on IDEAS

    as
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    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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