Less quality more costs: Does local power sector reliability matter for electricity intensity?
The paper describes the main determinants of electricity intensity in twenty-nine transition economies. We provide an original analysis on the way the local power sector unreliability may affect the firm-level electricity intensity. The paper explains the different firm’s behaviour, within EU and outside EU, in front of outages and/or local supply power quality. For this purpose, we use the Business Environment and Enterprise Performance Survey (BEEPS) done in 2008-2009 over 2400 enterprises. Moreover, we built an innovative measure of the electricity supply quality at the local-level inspired by the previous work of Guiso et al. (2004). Our results indicate that in non-EU (or insufficiently reformed) countries power sector unreliability increases firm’s electricity intensity. We estimated a potential reduction of one-fifth of firm’s electricity intensity associated with an improvement from the 75th percentile to the 25th percentile of the distribution of the local power sector unreliability. Our results suggest that bad quality of the local power sector seems to dampen the firms’ ability to decreases their electricity consumption, if the country’s institutional framework is poor.
|Date of creation:||13 May 2013|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Berndt, Ernst R & Wood, David O, 1975. "Technology, Prices, and the Derived Demand for Energy," The Review of Economics and Statistics, MIT Press, vol. 57(3), pages 259-68, August.
- Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2002.
"Does Local Financial Development Matter?,"
CEPR Discussion Papers
3307, C.E.P.R. Discussion Papers.
- Brown, Marilyn A., 2001. "Market failures and barriers as a basis for clean energy policies," Energy Policy, Elsevier, vol. 29(14), pages 1197-1207, November.
- World Bank, 2012. "World Development Report 2013," World Bank Publications, The World Bank, number 11843.
- Nicholas Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2010.
"Modern Management: Good for the Environment or Just Hot Air?,"
Royal Economic Society, vol. 120(544), pages 551-572, 05.
- Nick Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2008. "Modern management: good for the environment or just hot air?," LSE Research Online Documents on Economics 28505, London School of Economics and Political Science, LSE Library.
- Nicholas Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2008. "Modern Management: Good for the Environment or just Hot Air?," NBER Working Papers 14394, National Bureau of Economic Research, Inc.
- Nick Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2008. "Modern Management: Good for the Environment or Just Hot Air?," CEP Discussion Papers dp0891, Centre for Economic Performance, LSE.
- Nicholas Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2008. "Modern Management: Good for the Environment of Just Hot Air?," Discussion Papers 08-009, Stanford Institute for Economic Policy Research.
- Martin, Ralf & Muûls, Mirabelle & de Preux, Laure B. & Wagner, Ulrich J., 2012.
"Anatomy of a paradox: Management practices, organizational structure and energy efficiency,"
Journal of Environmental Economics and Management,
Elsevier, vol. 63(2), pages 208-223.
- Ralf Martin & Mirabelle Muûls & Ulrich J. Wagner & Laure B. de Preux, 2010. "Anatomy of a Paradox: Management Practices, Organisational Structure and Energy Efficiency," CEP Discussion Papers dp1039, Centre for Economic Performance, LSE.
- Zhang, Yin-Fang & Kirkpatrick, Colin & Parker, David, 2002.
"Electricity Sector Reform in Developing Countries: An Econometric Assessment of the Effects of Privatisation, Competition and Regulation,"
Centre on Regulation and Competition (CRC) Working papers
30593, University of Manchester, Institute for Development Policy and Management (IDPM).
- Yin-Fang Zhang & David Parker & Colin Kirkpatrick, 2008. "Electricity sector reform in developing countries: an econometric assessment of the effects of privatization, competition and regulation," Journal of Regulatory Economics, Springer, vol. 33(2), pages 159-178, April.
- Stanley Fischer & Ratna Sahay, 2000. "The Transition Economies After Ten Years," NBER Working Papers 7664, National Bureau of Economic Research, Inc.
- MORIKAWA Masayuki, 2011.
"Population Density and Efficiency in Energy Consumption: An empirical analysis of service establishments,"
11058, Research Institute of Economy, Trade and Industry (RIETI).
- Morikawa, Masayuki, 2012. "Population density and efficiency in energy consumption: An empirical analysis of service establishments," Energy Economics, Elsevier, vol. 34(5), pages 1617-1622.
- Jamasb, T. & Mota, R. & Newbery, D. & Pollitt, M., 2004.
"‘Electricity Sector Reform in Developing Countries: A Survey of Empirical Evidence on Determinants and Performance’,"
Cambridge Working Papers in Economics
0439, Faculty of Economics, University of Cambridge.
- Jamasb, Tooraj & Mota, Raffaella & Newbery, David & Pollitt, Michael, 2005. "Electricity sector reform in developing countries : a survey of empirical evidence on determinants and performance," Policy Research Working Paper Series 3549, The World Bank.
- Pollitt, M., 2007.
"Evaluating the evidence on electricity reform: Lessons for the South East Europe (SEE) market,"
Cambridge Working Papers in Economics
0756, Faculty of Economics, University of Cambridge.
- Pollitt, Michael, 2009. "Evaluating the evidence on electricity reform: Lessons for the South East Europe (SEE) market," Utilities Policy, Elsevier, vol. 17(1), pages 13-23, March.
- Trianni, A. & Cagno, E., 2012. "Dealing with barriers to energy efficiency and SMEs: Some empirical evidences," Energy, Elsevier, vol. 37(1), pages 494-504.
- DeCanio, Stephen J, 1998. "The efficiency paradox: bureaucratic and organizational barriers to profitable energy-saving investments," Energy Policy, Elsevier, vol. 26(5), pages 441-454, April.
- Nepal, Rabindra & Jamasb, Tooraj, 2012.
"Reforming the power sector in transition: Do institutions matter?,"
Elsevier, vol. 34(5), pages 1675-1682.
- Nepal, R. & Jamasb, T., 2011. "Reforming the Power Sector in Transition: Do Institutions Matter?," Cambridge Working Papers in Economics 1125, Faculty of Economics, University of Cambridge.
- Cornillie, Jan & Fankhauser, Samuel, 2004. "The energy intensity of transition countries," Energy Economics, Elsevier, vol. 26(3), pages 283-295, May.
- Vagliasindi, Maria, 2004. "The role of investment and regulatory reforms in the development of infrastructure across transition economies," Utilities Policy, Elsevier, vol. 12(4), pages 303-314, December.
- Stanley Fischer & Ratna Sahay, 2000. "The Transition Economies After Ten Years," IMF Working Papers 00/30, International Monetary Fund.
- Acaravci, Ali & Ozturk, Ilhan, 2010. "Electricity consumption-growth nexus: Evidence from panel data for transition countries," Energy Economics, Elsevier, vol. 32(3), pages 604-608, May.
- Fisher-Vanden, Karen & Jefferson, Gary H. & Liu, Hongmei & Tao, Quan, 2004. "What is driving China's decline in energy intensity?," Resource and Energy Economics, Elsevier, vol. 26(1), pages 77-97, March.
- Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-47, February.
- Apergis, Nicholas & Payne, James E., 2009. "Energy consumption and economic growth: Evidence from the Commonwealth of Independent States," Energy Economics, Elsevier, vol. 31(5), pages 641-647, September.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:46943. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.