Reviews existing evidence on the causes and consequences of electricity outages on economic development
The authors review existing evidence on the causes and consequences of electricity outages on economic development, focusing on the urban setting. Studies on the microeconomics of electrification concentrate primarily on the impacts of expanding access to electricity in rural areas. In cities, the main issue is the reliability of the electric grid rather than the lack of access to electricity. They discuss supply side, demand side, and political economy factors causing outages, the economic impacts of outages, and how energy suppliers respond to the prospect of electricity shortages. The authors conclude by highlighting 4 areas for further research.
This research was supported by the UK Department for International Development’s Energy and Economic Growth Applied Research Programme.
Gertler, P.J., Lee K., Mushfiq-Mobarak, A (2017) Electricity Reliability and Economic Development in Cities: A Microeconomic Perspective, EEG State-of-Knowledge Paper Series , Oxford Policy Management, Center for Effective Global Action, Energy Institute @ Haas