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Power Outages and Production Efficiency of Firms in Africa

Year 2016, Volume: 6 Issue: 1, 98 - 104, 01.03.2016

Abstract

Literature shows that power generation capacity in sub-Sahara Africa is lower than that of any other region in the world and capacity growth has also stagnated. Africa currently faces major electricity shortages with a number of power outages which has the tendency of rendering many firms less efficient in their production. This study therefore seeks to find the impact of power outages on production efficiency of firms in Africa. The source of data is the World Business Environment Survey conducted by the World Bank. The analysis deployed stochastic production frontier and a two-tail Tobit models. The finding shows that the number of power outages experienced in a typical month has a negative impact on the production efficiency of firms in Africa. This call for immense investment projects in new generation capacity in order to ameliorate the negative effect of power crisis on production process of firms in Africa.

Year 2016, Volume: 6 Issue: 1, 98 - 104, 01.03.2016

Abstract

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Details

Other ID JA82DJ75ER
Journal Section Research Article
Authors

Anselm Komla Abotsi This is me

Publication Date March 1, 2016
Published in Issue Year 2016 Volume: 6 Issue: 1

Cite

APA Abotsi, A. K. (2016). Power Outages and Production Efficiency of Firms in Africa. International Journal of Energy Economics and Policy, 6(1), 98-104.
AMA Abotsi AK. Power Outages and Production Efficiency of Firms in Africa. IJEEP. March 2016;6(1):98-104.
Chicago Abotsi, Anselm Komla. “Power Outages and Production Efficiency of Firms in Africa”. International Journal of Energy Economics and Policy 6, no. 1 (March 2016): 98-104.
EndNote Abotsi AK (March 1, 2016) Power Outages and Production Efficiency of Firms in Africa. International Journal of Energy Economics and Policy 6 1 98–104.
IEEE A. K. Abotsi, “Power Outages and Production Efficiency of Firms in Africa”, IJEEP, vol. 6, no. 1, pp. 98–104, 2016.
ISNAD Abotsi, Anselm Komla. “Power Outages and Production Efficiency of Firms in Africa”. International Journal of Energy Economics and Policy 6/1 (March 2016), 98-104.
JAMA Abotsi AK. Power Outages and Production Efficiency of Firms in Africa. IJEEP. 2016;6:98–104.
MLA Abotsi, Anselm Komla. “Power Outages and Production Efficiency of Firms in Africa”. International Journal of Energy Economics and Policy, vol. 6, no. 1, 2016, pp. 98-104.
Vancouver Abotsi AK. Power Outages and Production Efficiency of Firms in Africa. IJEEP. 2016;6(1):98-104.