Losing to Blackouts: Evidence from Firm Level Data

Many developing economies are often hit by electricity crises either because of supply constraints or lacking in broader energy market reforms. This study uses manufacturing firm census data from Ethiopia to identify productivity losses attributable to power disruptions. Our estimates show that thes...

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Bibliographic Details
Main Author: Gurara, Daniel
Other Authors: Tessema, Dawit
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2018
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Losing to Blackouts: Evidence from Firm Level Data  |c Daniel Gurara, Dawit Tessema 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2018 
300 |a 45 pages 
651 4 |a Ethiopia, The Federal Democratic Republic of 
653 |a Productivity 
653 |a Investments: Energy 
653 |a Capital and Total Factor Productivity 
653 |a Cost 
653 |a Industrial productivity 
653 |a Electricity 
653 |a Production 
653 |a Aggregate Labor Productivity 
653 |a Unemployment 
653 |a Skills 
653 |a Total factor productivity 
653 |a Aggregate Human Capital 
653 |a Labor Productivity 
653 |a Macroeconomics: Production 
653 |a Industrial capacity 
653 |a Commodities 
653 |a Capacity utilization 
653 |a Legal Monopolies and Regulation or Deregulation 
653 |a Macroeconomics 
653 |a Electric Utilities 
653 |a Occupational Choice 
653 |a Wages 
653 |a Capacity 
653 |a Labor productivity 
653 |a Investment & securities 
653 |a Intergenerational Income Distribution 
653 |a Human Capital 
653 |a Employment 
653 |a Production and Operations Management 
653 |a Electric utilities 
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520 |a Many developing economies are often hit by electricity crises either because of supply constraints or lacking in broader energy market reforms. This study uses manufacturing firm census data from Ethiopia to identify productivity losses attributable to power disruptions. Our estimates show that these disruptions, on average, result in productivity losses of about 4–10 percent. We found nonlinear productivity losses at different quantiles along the productivity distribution. Firms at higher quantiles faced higher losses compared to firms around the median. We observed patterns of systematic shutdowns as firms attempt to minimize losses