Underutilized Potential : The Business Costs of Unreliable Infrastructure in Developing Countries
This study constructs a microdata set of about 143,000 firms to estimate the monetary costs of infrastructure disruptions in 137 low- and middle-income countries, representing 78 percent of the world population and 80 percent of the GDP of low- and...
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/336371560797230631/Underutilized-Potential-The-Business-Costs-of-Unreliable-Infrastructure-in-Developing-Countries http://hdl.handle.net/10986/31919 |
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okr-10986-319192022-09-20T00:13:36Z Underutilized Potential : The Business Costs of Unreliable Infrastructure in Developing Countries Rentschler, Jun Kornejew, Martin Hallegatte, Stephane Braese, Johannes Obolensky, Marguerite NATURAL DISASTER ELECTRICITY WATER SUPPLY POWER OUTAGE BUSINESS ENVIRONMENT RESILIENT INFRASTRUCTURE INFRASTRUCTURE INVESTMENT FIRM PRODUCTIVITY TRANSPORTATION INFRASTRUCTURE CAPACITY UTILIZATION This study constructs a microdata set of about 143,000 firms to estimate the monetary costs of infrastructure disruptions in 137 low- and middle-income countries, representing 78 percent of the world population and 80 percent of the GDP of low- and -middle-income countries. Specifically, this study assesses the impact of transport, electricity, and water disruptions on the capacity utilization rates of firms. The estimates suggest that utilization losses amount to $151 billion a year -- of which $107 billion are due to transport disruptions, $38 billion due to blackouts, and $6 billion due to dryouts. Moreover, this study shows that electricity outages are causing sales losses equivalent to $82 billion a year. Firms are also incurring the costs of self-generated electricity, estimated to amount to $64 billion a year (including annualized capital expenditure). At almost $300 billion a year, these figures highlight the substantial drag that unreliable infrastructure imposes on firms in developing countries. Yet, these figures are likely to be under-estimates as neither all countries nor all types of impacts are covered. 2019-06-20T15:41:00Z 2019-06-20T15:41:00Z 2019-06 Working Paper http://documents.worldbank.org/curated/en/336371560797230631/Underutilized-Potential-The-Business-Costs-of-Unreliable-Infrastructure-in-Developing-Countries http://hdl.handle.net/10986/31919 English Policy Research Working Paper;No. 8899 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 |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
NATURAL DISASTER ELECTRICITY WATER SUPPLY POWER OUTAGE BUSINESS ENVIRONMENT RESILIENT INFRASTRUCTURE INFRASTRUCTURE INVESTMENT FIRM PRODUCTIVITY TRANSPORTATION INFRASTRUCTURE CAPACITY UTILIZATION |
| spellingShingle |
NATURAL DISASTER ELECTRICITY WATER SUPPLY POWER OUTAGE BUSINESS ENVIRONMENT RESILIENT INFRASTRUCTURE INFRASTRUCTURE INVESTMENT FIRM PRODUCTIVITY TRANSPORTATION INFRASTRUCTURE CAPACITY UTILIZATION Rentschler, Jun Kornejew, Martin Hallegatte, Stephane Braese, Johannes Obolensky, Marguerite Underutilized Potential : The Business Costs of Unreliable Infrastructure in Developing Countries |
| relation |
Policy Research Working Paper;No. 8899 |
| description |
This study constructs a microdata set of
about 143,000 firms to estimate the monetary costs of
infrastructure disruptions in 137 low- and middle-income
countries, representing 78 percent of the world population
and 80 percent of the GDP of low- and -middle-income
countries. Specifically, this study assesses the impact of
transport, electricity, and water disruptions on the
capacity utilization rates of firms. The estimates suggest
that utilization losses amount to $151 billion a year -- of
which $107 billion are due to transport disruptions, $38
billion due to blackouts, and $6 billion due to dryouts.
Moreover, this study shows that electricity outages are
causing sales losses equivalent to $82 billion a year. Firms
are also incurring the costs of self-generated electricity,
estimated to amount to $64 billion a year (including
annualized capital expenditure). At almost $300 billion a
year, these figures highlight the substantial drag that
unreliable infrastructure imposes on firms in developing
countries. Yet, these figures are likely to be
under-estimates as neither all countries nor all types of
impacts are covered. |
| format |
Working Paper |
| author |
Rentschler, Jun Kornejew, Martin Hallegatte, Stephane Braese, Johannes Obolensky, Marguerite |
| author_facet |
Rentschler, Jun Kornejew, Martin Hallegatte, Stephane Braese, Johannes Obolensky, Marguerite |
| author_sort |
Rentschler, Jun |
| title |
Underutilized Potential : The Business Costs of Unreliable Infrastructure in Developing Countries |
| title_short |
Underutilized Potential : The Business Costs of Unreliable Infrastructure in Developing Countries |
| title_full |
Underutilized Potential : The Business Costs of Unreliable Infrastructure in Developing Countries |
| title_fullStr |
Underutilized Potential : The Business Costs of Unreliable Infrastructure in Developing Countries |
| title_full_unstemmed |
Underutilized Potential : The Business Costs of Unreliable Infrastructure in Developing Countries |
| title_sort |
underutilized potential : the business costs of unreliable infrastructure in developing countries |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/336371560797230631/Underutilized-Potential-The-Business-Costs-of-Unreliable-Infrastructure-in-Developing-Countries http://hdl.handle.net/10986/31919 |
| _version_ |
1764475367697940480 |