Journal
ENERGY ECONOMICS
Volume 38, Issue -, Pages 19-23Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.eneco.2013.02.016
Keywords
Economic growth; Public utilities; Electricity; Earthlights; Africa
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This paper estimates the total effect of power outages on economic growth in Sub-Saharan Africa over the period 1995-2007. We pay close attention both to potential errors of measurement of African economic growth and to the endogeneity of outages. As suggested by Henderson et al. (American Economic Review 102(2): 994-1028,2012), we combine Penn World Tables GDP data with satellite-based data on nightlights to arrive at a more accurate measure of economic growth. Following Andersen et al. (Review of Economics and Statistics 94(4): 903-924,2012), we also employ lightning density as an instrument for power outages. Our results suggest a substantial growth drag of a weak power infrastructure in Sub-Saharan Africa. (C) 2013 Elsevier B.V. All rights reserved.
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