1. The determinants of electricity constraints by firms in developing countries
- Author
-
Théophile Azomahou, Mahamady Ouedraogo, Neepa Gaekwad, Elizabeth Asiedu, Centre d'Études et de Recherches sur le Développement International (CERDI), and Université d'Auvergne - Clermont-Ferrand I (UdA)-Centre National de la Recherche Scientifique (CNRS)
- Subjects
Economics and Econometrics ,Labour economics ,Government ,business.industry ,020209 energy ,05 social sciences ,1. No poverty ,Developing country ,Ordered probit ,02 engineering and technology ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,General Energy ,Manufacturing ,0502 economics and business ,8. Economic growth ,0202 electrical engineering, electronic engineering, information engineering ,Survey data collection ,Business ,Electricity ,050207 economics ,Duration (project management) ,Energy poverty ,ComputingMilieux_MISCELLANEOUS - Abstract
We employ survey data for 108 developing countries over the period 2006–2017 and estimate an ordered probit model to determine the firm and country characteristics that affect the probability that a firm is energy poor—i.e., the firm will report that electricity is an obstacle to the firm's operations. We find that firms that experienced power outages and firms in the manufacturing industry are more likely to be energy poor. In contrast, majority-owned government firms and older firms are less likely to be energy poor. The gender of the firm owner and the size of the firm are not correlated with firm energy poverty. Among firms that experienced power outages, firm energy poverty increases with the frequency as well as the duration of outages. We also find that firms that operate in countries with weak institutions and in countries where residents have limited access to electricity are more likely to be energy poor.
- Published
- 2021