Examining the Economic Impact of COVID-19 in India through Daily Electricity Consumption and Nighttime Light Intensity

The COVID-19 pandemic has disrupted economic activity in India. Adjusting policies to contain trans- mission while mitigating the economic impact requires an assessment of the economic situation in near real-time and at high spatial granularity. Th...

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Main Authors: Beyer, Robert C.M., Franco-Bedoya, Sebastian, Galdo, Virgilio
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/763351592916493022/Examining-the-Economic-Impact-of-COVID-19-in-India-through-Daily-Electricity-Consumption-and-Nighttime-Light-Intensity
http://hdl.handle.net/10986/33986
id okr-10986-33986
recordtype oai_dc
spelling okr-10986-339862022-09-20T00:11:08Z Examining the Economic Impact of COVID-19 in India through Daily Electricity Consumption and Nighttime Light Intensity Beyer, Robert C.M. Franco-Bedoya, Sebastian Galdo, Virgilio CORONAVIRUS COVID-19 PANDEMIC IMPACT LOCKDOWN ELECTRICITY CONSUMPTION NIGHTLIGHT MEASUREMENT NIGHTTIME LIGHT INTENSITY ENERGY CONSUMPTION MIGRATION The COVID-19 pandemic has disrupted economic activity in India. Adjusting policies to contain trans- mission while mitigating the economic impact requires an assessment of the economic situation in near real-time and at high spatial granularity. This paper shows that daily electricity consumption and monthly nighttime light intensity can proxy for economic activity in India. Energy consumption is compared with the predictions of a consumption model that explains 90 percent of the variation in normal times. Energy consumption declined strongly after a national lockdown was implemented on March 25, 2020 and remained a quarter below normal levels throughout April. It recovered somewhat subsequently, but electricity consumption was on average still 13.5 percent lower than normal in May. Not all states and union territories have been affected equally. While electricity consumption halved in some, others were not affected at all. Part of the heterogeneity is explained by the prevalence of manufacturing and return migration. At the district level, higher COVID-19 infection rates were associated with larger declines in nighttime light intensity in April. Together, daily electricity consumption and nighttime light intensity allow monitoring economic activity in near real-time and high spatial granularity. 2020-06-25T14:59:44Z 2020-06-25T14:59:44Z 2020-06 Working Paper http://documents.worldbank.org/curated/en/763351592916493022/Examining-the-Economic-Impact-of-COVID-19-in-India-through-Daily-Electricity-Consumption-and-Nighttime-Light-Intensity http://hdl.handle.net/10986/33986 English Policy Research Working Paper;No. 9291 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 India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CORONAVIRUS
COVID-19
PANDEMIC IMPACT
LOCKDOWN
ELECTRICITY CONSUMPTION
NIGHTLIGHT MEASUREMENT
NIGHTTIME LIGHT INTENSITY
ENERGY CONSUMPTION
MIGRATION
spellingShingle CORONAVIRUS
COVID-19
PANDEMIC IMPACT
LOCKDOWN
ELECTRICITY CONSUMPTION
NIGHTLIGHT MEASUREMENT
NIGHTTIME LIGHT INTENSITY
ENERGY CONSUMPTION
MIGRATION
Beyer, Robert C.M.
Franco-Bedoya, Sebastian
Galdo, Virgilio
Examining the Economic Impact of COVID-19 in India through Daily Electricity Consumption and Nighttime Light Intensity
geographic_facet South Asia
India
relation Policy Research Working Paper;No. 9291
description The COVID-19 pandemic has disrupted economic activity in India. Adjusting policies to contain trans- mission while mitigating the economic impact requires an assessment of the economic situation in near real-time and at high spatial granularity. This paper shows that daily electricity consumption and monthly nighttime light intensity can proxy for economic activity in India. Energy consumption is compared with the predictions of a consumption model that explains 90 percent of the variation in normal times. Energy consumption declined strongly after a national lockdown was implemented on March 25, 2020 and remained a quarter below normal levels throughout April. It recovered somewhat subsequently, but electricity consumption was on average still 13.5 percent lower than normal in May. Not all states and union territories have been affected equally. While electricity consumption halved in some, others were not affected at all. Part of the heterogeneity is explained by the prevalence of manufacturing and return migration. At the district level, higher COVID-19 infection rates were associated with larger declines in nighttime light intensity in April. Together, daily electricity consumption and nighttime light intensity allow monitoring economic activity in near real-time and high spatial granularity.
format Working Paper
author Beyer, Robert C.M.
Franco-Bedoya, Sebastian
Galdo, Virgilio
author_facet Beyer, Robert C.M.
Franco-Bedoya, Sebastian
Galdo, Virgilio
author_sort Beyer, Robert C.M.
title Examining the Economic Impact of COVID-19 in India through Daily Electricity Consumption and Nighttime Light Intensity
title_short Examining the Economic Impact of COVID-19 in India through Daily Electricity Consumption and Nighttime Light Intensity
title_full Examining the Economic Impact of COVID-19 in India through Daily Electricity Consumption and Nighttime Light Intensity
title_fullStr Examining the Economic Impact of COVID-19 in India through Daily Electricity Consumption and Nighttime Light Intensity
title_full_unstemmed Examining the Economic Impact of COVID-19 in India through Daily Electricity Consumption and Nighttime Light Intensity
title_sort examining the economic impact of covid-19 in india through daily electricity consumption and nighttime light intensity
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/763351592916493022/Examining-the-Economic-Impact-of-COVID-19-in-India-through-Daily-Electricity-Consumption-and-Nighttime-Light-Intensity
http://hdl.handle.net/10986/33986
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