Firms Operating under Electricity Constraints in Developing Countries
By Philippe Alby, J. Dethier, Stéphane Straub. 2013
135 citations recorded by the source corpus.
Many developing countries are unable to provide their industrial sectors with reliable electric power, with the result that many enterprises must contend with an insufficient and unreliable supply of electricity. Because of these constraints, enterprises often opt for self-generation of electricity even though it is widely considered a second-best solution. This paper develops a theoretical model of investment behavior in remedial infrastructure in the presence of physical constraints. It then illustrates the models predictions using a large cross-country sample of enterprises from the World Bank Enterprise Survey database. Electricity-intensive sectors in high-outage countries are characterized by a significantly lower share of small firms.
Subfields: Business and International Management, Economics and Econometrics, Pollution
View Paper: https://www.semanticscholar.org/paper/231f0b0d2f3dc132c146e29b7d5ccd83c29dcc9d
How researchers see this paper
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In Economics and Econometrics
- Robert J. R. Elliott
- M. Cole
- Dominique van de Walle
- M. Ravallion
- Gayatri Koolwal
- Eric Strobl
- Giovanni Occhiali
- V. Mendiratta
In Pollution
- Dominique van de Walle
- Gayatri Koolwal
- M. Ravallion
- Robert J. R. Elliott
- V. Mendiratta
- Ama Baafra Abeberese
Citations in the corpus
- Long-term Gains from Electrification in Rural India (2015, background): “Constraints on electricity supply are believed to be a significant impediment to small-scale enterprise development and rural industrialization in this setting, and there is supportive evidence in the work of Alby et al. (2013).(7) Leisure activities too can be reallocated, and this may well matter ”
- Power outages and firm performance in Sub-Saharan Africa (2018, background): “In a related literature, a series of studies examine the determinants of a firm’s decision to invest in back-up generation (Steinbucks and Foster 2010, Alby et al. 2013 and Oseni and Pollitt 2015). Studies that consider the broader effect of electrification include Peters et al. (2010) and Dinkelman”
- Electricity Cost and Firm Performance: Evidence from India (2017, background): “Although there is a small development literature on the effects of electricity provision on firms (see, e.g., Reinikka & Svensson, 2002; Rud, 2012a, 2012b; Alby et al., 2013; Fisher-Vanden et al., 2015; Allcott et al., 2016), there has not yet been research on the potential effect of electricity con”