THE ECONOMIC COSTS OF UNSUPPLIED ELECTRICITY IN NIGERIA’S INDUSTRIAL SECTOR: THE ROLES OF CAPTIVE POWER GENERATION AND FIRM CHARACTERISTICS
| Autor: | Oguwuike Michael Enyoghasim, Chima Nwabugo Durueke, Lasbrey Anochiwa, George Abuchi Agwu, Iyke Uwazie Uwazie, F. Tobechi Agbanike, Ikwor Okoroafor Ogbonnaya |
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| Rok vydání: | 2019 |
| Předmět: |
lcsh:GE1-350
030214 geriatrics Ceteris paribus 0211 other engineering and technologies Ordered probit 02 engineering and technology lcsh:HD9502-9502.5 lcsh:Energy industries. Energy policy. Fuel trade 03 medical and health sciences 0302 clinical medicine General Energy Willingness to pay Economic cost Secondary sector of the economy Tobit model 021108 energy Small and medium-sized enterprises Business General Economics Econometrics and Finance Constraint (mathematics) lcsh:Environmental sciences Industrial organization |
| Zdroj: | International Journal of Energy Economics and Policy, Vol 9, Iss 3, Pp 196-204 (2019) |
| ISSN: | 2146-4553 |
| DOI: | 10.32479/ijeep.7681 |
| Popis: | Power failure is the most influential business constraint in Nigeria. In this study we pursue answers to two questions concerning policies to mitigate the problem. In the first, we model firms’ perception of power failure constraint and found that small and medium enterprises are most constrained. In the second, we examined firms’ willingness to pay to avoid power outages and found that on average and ceteris paribus, firms are willing to commit extra 15% of their annual sales to ensure uninterrupted power supply. Furthermore, captive power generating firms are even willing to pay more for uninterrupted power supply. The analysis was based on a sample of 2,676 firms compiled from 2014 World Bank’s Enterprise Survey (WBES) for Nigeria. The empirical estimations were based on ordered probit and censored Tobit models respectively. Keywords: Power outages; industrial sector; captive power generation; firmJEL Classifications: L6; D21; C5DOI: https://doi.org/10.32479/ijeep.7681 |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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