The Impact of Electricity Shortages on Firm Productivity : Evidence from Pakistan

Power shortages present a significant challenge to manufacturers, who rely on power as a key input to production. In Pakistan, power shortages are commonplace, but empirical evidence on the impact of shortages is still lacking. Using a survey of 4,...

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Main Authors:	Grainger, Corbett A., Zhang, Fan
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	ELECTRICITY FIRM PERFORMANCE SHORTAGES
Online Access:	http://documents.worldbank.org/curated/en/978661498756334535/The-impact-of-electricity-shortages-on-firm-productivity-evidence-from-Pakistan http://hdl.handle.net/10986/27633

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recordtype	oai_dc
spelling	okr-10986-276332021-06-08T14:42:47Z The Impact of Electricity Shortages on Firm Productivity : Evidence from Pakistan Grainger, Corbett A. Zhang, Fan ELECTRICITY FIRM PERFORMANCE SHORTAGES Power shortages present a significant challenge to manufacturers, who rely on power as a key input to production. In Pakistan, power shortages are commonplace, but empirical evidence on the impact of shortages is still lacking. Using a survey of 4,500 manufacturing firms for the year 2010-11, this paper estimates the impact of electricity shortages on firm productivity in Pakistan. The analysis finds that a 10 percent increase in the duration of outages on average leads to a 0.14 percent decrease in a firm's total revenue and a 0.36 percent decrease in the value added, all else being equal. There is heterogeneity in the impacts of shortages across sectors: the industries that are most energy-intensive, such as manufacturers of metal, wood, and paper, are affected the most severely by shortages. 2017-07-19T16:08:08Z 2017-07-19T16:08:08Z 2017-06 Working Paper http://documents.worldbank.org/curated/en/978661498756334535/The-impact-of-electricity-shortages-on-firm-productivity-evidence-from-Pakistan http://hdl.handle.net/10986/27633 English en_US Policy Research Working Paper;No. 8130 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Pakistan
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ELECTRICITY FIRM PERFORMANCE SHORTAGES
spellingShingle	ELECTRICITY FIRM PERFORMANCE SHORTAGES Grainger, Corbett A. Zhang, Fan The Impact of Electricity Shortages on Firm Productivity : Evidence from Pakistan
geographic_facet	South Asia Pakistan
relation	Policy Research Working Paper;No. 8130
description	Power shortages present a significant challenge to manufacturers, who rely on power as a key input to production. In Pakistan, power shortages are commonplace, but empirical evidence on the impact of shortages is still lacking. Using a survey of 4,500 manufacturing firms for the year 2010-11, this paper estimates the impact of electricity shortages on firm productivity in Pakistan. The analysis finds that a 10 percent increase in the duration of outages on average leads to a 0.14 percent decrease in a firm's total revenue and a 0.36 percent decrease in the value added, all else being equal. There is heterogeneity in the impacts of shortages across sectors: the industries that are most energy-intensive, such as manufacturers of metal, wood, and paper, are affected the most severely by shortages.
format	Working Paper
author	Grainger, Corbett A. Zhang, Fan
author_facet	Grainger, Corbett A. Zhang, Fan
author_sort	Grainger, Corbett A.
title	The Impact of Electricity Shortages on Firm Productivity : Evidence from Pakistan
title_short	The Impact of Electricity Shortages on Firm Productivity : Evidence from Pakistan
title_full	The Impact of Electricity Shortages on Firm Productivity : Evidence from Pakistan
title_fullStr	The Impact of Electricity Shortages on Firm Productivity : Evidence from Pakistan
title_full_unstemmed	The Impact of Electricity Shortages on Firm Productivity : Evidence from Pakistan
title_sort	impact of electricity shortages on firm productivity : evidence from pakistan
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/978661498756334535/The-impact-of-electricity-shortages-on-firm-productivity-evidence-from-Pakistan http://hdl.handle.net/10986/27633
_version_	1764465601850376192

The Impact of Electricity Shortages on Firm Productivity : Evidence from Pakistan

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