IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v142y2018icp962-982.html
   My bibliography  Save this article

Institutions, development and energy constraints

Author

Listed:
  • Mertzanis, Charilaos

Abstract

Micro survey data is used to explore the impact of firm-specific characteristics on firms' access to energy in 138 developing countries. The results show that firm-specific characteristics (age, size, sector of activity, location, ownership, etc.) are broadly significant predictors of firms' access to energy. In addition, energy supply conditions are also significant predictors of firms' energy constraints. The predictive power of these factors differs among sectors of activity, geographical regions and the income levels of developing countries. The predictive power of firm-specific characteristics is mitigated by national economic and non-economic factors, such as development and institutions. Indeed, the national levels of economic, financial and human development as well as income inequality, along with regulatory governance conditions and social and legal structures, all play a role in determining firms' energy constraints. The composition of energy generation sources play a significant role too. The results show that the classification of firms as energy-constrained or unconstrained ones in developing countries may be better assessed by accounting for the role of both micro- and macro-level factors in different countries.

Suggested Citation

  • Mertzanis, Charilaos, 2018. "Institutions, development and energy constraints," Energy, Elsevier, vol. 142(C), pages 962-982.
    • Handle: RePEc:eee:energy:v:142:y:2018:i:c:p:962-982
    DOI: 10.1016/j.energy.2017.10.073
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544217317784
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2017.10.073?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Apergis, Nicholas & Tang, Chor Foon, 2013. "Is the energy-led growth hypothesis valid? New evidence from a sample of 85 countries," Energy Economics, Elsevier, vol. 38(C), pages 24-31.
    2. Peters, Jörg & Vance, Colin & Harsdorff, Marek, 2011. "Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap," World Development, Elsevier, vol. 39(5), pages 773-783, May.
    3. Banerjee, Avishek & Tierney, Michael. J. & Thorpe, Roger. N., 2012. "Thermoeconomics, cost benefit analysis, and a novel way of dealing with revenue generating dissipative units applied to candidate decentralised energy systems for Indian rural villages," Energy, Elsevier, vol. 43(1), pages 477-488.
    4. Eric D. Ramstetter & Dionisius Narjoko, 2014. "Ownership and Energy Efficiency in Indonesian Manufacturing," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(2), pages 255-276, August.
    5. Taryn Dinkelman, 2011. "The Effects of Rural Electrification on Employment: New Evidence from South Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3078-3108, December.
    6. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1203-1250.
    7. Jacobsson, Staffan & Lauber, Volkmar, 2006. "The politics and policy of energy system transformation--explaining the German diffusion of renewable energy technology," Energy Policy, Elsevier, vol. 34(3), pages 256-276, February.
    8. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    9. Urmee, Tania & Harries, David & Schlapfer, August, 2009. "Issues related to rural electrification using renewable energy in developing countries of Asia and Pacific," Renewable Energy, Elsevier, vol. 34(2), pages 354-357.
    10. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
    11. Barro, Robert J & Sala-i-Martin, Xavier, 1997. "Technological Diffusion, Convergence, and Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 1-26, March.
    12. Gales, Ben & Kander, Astrid & Malanima, Paolo & Rubio, Mar, 2007. "North versus South: Energy transition and energy intensity in Europe over 200 years," European Review of Economic History, Cambridge University Press, vol. 11(2), pages 219-253, August.
    13. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014.
    14. Kaygusuz, Kamil, 2012. "Energy for sustainable development: A case of developing countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(2), pages 1116-1126.
    15. Fix, Blair, 2017. "Energy and Institution Size," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 12(2), pages 1-22.
    16. Himri, Y. & Boudghene Stambouli, A. & Draoui, B. & Himri, S., 2008. "Techno-economical study of hybrid power system for a remote village in Algeria," Energy, Elsevier, vol. 33(7), pages 1128-1136.
    17. Fernandes, Ana M., 2008. "Firm Productivity in Bangladesh Manufacturing Industries," World Development, Elsevier, vol. 36(10), pages 1725-1744, October.
    18. Sovacool, Benjamin K. & Walter, Götz & Van de Graaf, Thijs & Andrews, Nathan, 2016. "Energy Governance, Transnational Rules, and the Resource Curse: Exploring the Effectiveness of the Extractive Industries Transparency Initiative (EITI)," World Development, Elsevier, vol. 83(C), pages 179-192.
    19. Haanyika, Charles Moonga, 2006. "Rural electrification policy and institutional linkages," Energy Policy, Elsevier, vol. 34(17), pages 2977-2993, November.
    20. Jens Matthias Arnold & Aaditya Mattoo & Gaia Narciso, 2008. "Services Inputs and Firm Productivity in Sub-Saharan Africa: Evidence from Firm-Level Data," Journal of African Economies, Centre for the Study of African Economies, vol. 17(4), pages 578-599, August.
    21. Steinbuks, J. & Foster, V., 2010. "When do firms generate? Evidence on in-house electricity supply in Africa," Energy Economics, Elsevier, vol. 32(3), pages 505-514, May.
    22. Aoife Brophy Haney & Michael G. Pollitt, 2013. "New models of public ownership in energy," International Review of Applied Economics, Taylor & Francis Journals, vol. 27(2), pages 174-192, March.
    23. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9781107005198, September.
    24. Blalock, Garrick & Veloso, Francisco M., 2007. "Imports, Productivity Growth, and Supply Chain Learning," World Development, Elsevier, vol. 35(7), pages 1134-1151, July.
    25. Hallward-Driemeier, Mary & Aterido, Reyes, 2009. "Comparing Apples with....Apples : how to make (more) sense of subjective rankings of constraints to business," Policy Research Working Paper Series 5054, The World Bank.
    26. Sovacool, Benjamin K., 2013. "A qualitative factor analysis of renewable energy and Sustainable Energy for All (SE4ALL) in the Asia-Pacific," Energy Policy, Elsevier, vol. 59(C), pages 393-403.
    27. Florini, Ann & Sovacool, Benjamin K., 2009. "Who governs energy? The challenges facing global energy governance," Energy Policy, Elsevier, vol. 37(12), pages 5239-5248, December.
    28. Eifert, Benn & Gelb, Alan & Ramachandran, Vijaya, 2008. "The Cost of Doing Business in Africa: Evidence from Enterprise Survey Data," World Development, Elsevier, vol. 36(9), pages 1531-1546, September.
    29. Straub, Stephane, 2008. "Infrastructure and growth in developing countries : recent advances and research challenges," Policy Research Working Paper Series 4460, The World Bank.
    30. Hope, Aimie L.B. & Jones, Christopher R., 2014. "The impact of religious faith on attitudes to environmental issues and Carbon Capture and Storage (CCS) technologies: A mixed methods study," Technology in Society, Elsevier, vol. 38(C), pages 48-59.
    31. Sarkar, Nibedita & Ghosh, Sumanta Kumar & Bannerjee, Satarupa & Aikat, Kaustav, 2012. "Bioethanol production from agricultural wastes: An overview," Renewable Energy, Elsevier, vol. 37(1), pages 19-27.
    32. Thorsten Beck & Asli Demirgüç‐Kunt & Vojislav Maksimovic, 2005. "Financial and Legal Constraints to Growth: Does Firm Size Matter?," Journal of Finance, American Finance Association, vol. 60(1), pages 137-177, February.
    33. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9780521182935, September.
    34. Little, I M D, 1987. "Small Manufacturing Enterprises in Developing Countries," The World Bank Economic Review, World Bank, vol. 1(2), pages 203-235, January.
    35. Rahman, Md. Mizanur & Paatero, Jukka V. & Lahdelma, Risto, 2013. "Evaluation of choices for sustainable rural electrification in developing countries: A multicriteria approach," Energy Policy, Elsevier, vol. 59(C), pages 589-599.
    36. Blair Fix, 2017. "Energy and institution size," PLOS ONE, Public Library of Science, vol. 12(2), pages 1-22, February.
    37. Johnson, Nathan G. & Bryden, Kenneth M., 2012. "Energy supply and use in a rural West African village," Energy, Elsevier, vol. 43(1), pages 283-292.
    38. Agbemabiese, Lawrence & Nkomo, Jabavu & Sokona, Youba, 2012. "Enabling innovations in energy access: An African perspective," Energy Policy, Elsevier, vol. 47(S1), pages 38-47.
    39. Holtmeyer, Melissa L. & Wang, Shuxiao & Axelbaum, Richard L., 2013. "Considerations for decision-making on distributed power generation in rural areas," Energy Policy, Elsevier, vol. 63(C), pages 708-715.
    40. Lax, Jeffrey R. & Phillips, Justin H., 2009. "Gay Rights in the States: Public Opinion and Policy Responsiveness," American Political Science Review, Cambridge University Press, vol. 103(3), pages 367-386, August.
    41. van Ruijven, Bas J. & Schers, Jules & van Vuuren, Detlef P., 2012. "Model-based scenarios for rural electrification in developing countries," Energy, Elsevier, vol. 38(1), pages 386-397.
    42. Reddy, B. Sudhakara, 2015. "Access to modern energy services: An economic and policy framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 198-212.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Venugopal Prabhakar Gantasala & Swapna Bhargavi Gantasala & Trinh La, 2022. "Influence of motivation on achieving energy sustainability: mediating effects of decision-making," Environment Systems and Decisions, Springer, vol. 42(4), pages 626-636, December.
    2. Tinta, Abdoulganiour Almame, 2023. "Education puzzle, financial inclusion, and energy substitution: Growth Scales," Energy Policy, Elsevier, vol. 175(C).
    3. Mertzanis, Charilaos & Garas, Samy & Abdel-Maksoud, Ahmed, 2020. "Integrity of financial information and firms' access to energy in developing countries," Energy Economics, Elsevier, vol. 92(C).
    4. Azevedo, Susana Garrido & Sequeira, Tiago & Santos, Marcelo & Mendes, Luis, 2019. "Biomass-related sustainability: A review of the literature and interpretive structural modeling," Energy, Elsevier, vol. 171(C), pages 1107-1125.
    5. Ahmad, Tanveer & Zhang, Dongdong & Huang, Chao, 2021. "Methodological framework for short-and medium-term energy, solar and wind power forecasting with stochastic-based machine learning approach to monetary and energy policy applications," Energy, Elsevier, vol. 231(C).
    6. Tinta, Abdoulganiour Almame, 2023. "Energy substitution in Africa: Cross-regional differentiation effects," Energy, Elsevier, vol. 263(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peters, Jörg & Vance, Colin & Harsdorff, Marek, 2011. "Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap," World Development, Elsevier, vol. 39(5), pages 773-783, May.
    2. Nerini, Francesco Fuso & Broad, Oliver & Mentis, Dimitris & Welsch, Manuel & Bazilian, Morgan & Howells, Mark, 2016. "A cost comparison of technology approaches for improving access to electricity services," Energy, Elsevier, vol. 95(C), pages 255-265.
    3. Musiliu 0. Oseni & Michael G. Pollitt, 2013. "The Economic Costs of Unsupplied Electricty: Evidence from Backup Generation among African Firms," Cambridge Working Papers in Economics 1351, Faculty of Economics, University of Cambridge.
    4. Almeshqab, Fatema & Ustun, Taha Selim, 2019. "Lessons learned from rural electrification initiatives in developing countries: Insights for technical, social, financial and public policy aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 102(C), pages 35-53.
    5. Lisa CHAUVET & Alvaro DE MIGUEL TORRES & Alexa TIEMANN, 2018. "Electricity and manufacturing firm profits in Myanmar," Working Papers P214, FERDI.
    6. Dagnachew, Anteneh G. & Lucas, Paul L. & Hof, Andries F. & Gernaat, David E.H.J. & de Boer, Harmen-Sytze & van Vuuren, Detlef P., 2017. "The role of decentralized systems in providing universal electricity access in Sub-Saharan Africa – A model-based approach," Energy, Elsevier, vol. 139(C), pages 184-195.
    7. Oseni, Musiliu O. & Pollitt, Michael G., 2015. "A firm-level analysis of outage loss differentials and self-generation: Evidence from African business enterprises," Energy Economics, Elsevier, vol. 52(PB), pages 277-286.
    8. Steinbuks Jevgenijs, 2012. "Firms' Investment under Financial and Infrastructure Constraints: Evidence from In-House Generation in Sub-Saharan Africa," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-34, October.
    9. Ullah, Barkat, 2021. "Does innovation explain the performance gap between privatized and private firms?," Journal of Economics and Business, Elsevier, vol. 113(C).
    10. Carmen Pagés-Serra & Reyes Aterido & Mary Hallward-Driemeier, 2007. "Clima de negocios y creación de empleo: El efecto del acceso al crédito, la corrupción y el marco regulatorio en el crecimiento de las empresas," Research Department Publications 4560, Inter-American Development Bank, Research Department.
    11. de Carvalho, Antonio Gledson, 2008. "The Effect of Size and Institutional Development on the Growth of Brazilian Firms," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 62(4), December.
    12. Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross, 2006. "Bank supervision and corruption in lending," Journal of Monetary Economics, Elsevier, vol. 53(8), pages 2131-2163, November.
    13. Harrison, Ann E. & Lin, Justin Yifu & Xu, Lixin Colin, 2014. "Explaining Africa’s (Dis)advantage," World Development, Elsevier, vol. 63(C), pages 59-77.
    14. Kamjoo, Azadeh & Maheri, Alireza & Putrus, Ghanim A., 2014. "Chance constrained programming using non-Gaussian joint distribution function in design of standalone hybrid renewable energy systems," Energy, Elsevier, vol. 66(C), pages 677-688.
    15. Justice Tei Mensah, 2016. "Bring Back Our Light: Power Outages and Industrial Performance in Sub-Saharan Africa," Working Papers 2016.20, FAERE - French Association of Environmental and Resource Economists.
    16. Mazur, Christoph & Hoegerle, Yannick & Brucoli, Maria & van Dam, Koen & Guo, Miao & Markides, Christos N. & Shah, Nilay, 2019. "A holistic resilience framework development for rural power systems in emerging economies," Applied Energy, Elsevier, vol. 235(C), pages 219-232.
    17. López-González, A. & Domenech, B. & Ferrer-Martí, L., 2018. "Formative evaluation of sustainability in rural electrification programs from a management perspective: A case study from Venezuela," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 95-109.
    18. Shouro Dasgupta & Enrica De Cian, 2016. "Institutions and the Environment: Existing Evidence and Future Directions," Working Papers 2016.41, Fondazione Eni Enrico Mattei.
    19. Brand-Correa, Lina I. & Steinberger, Julia K., 2017. "A Framework for Decoupling Human Need Satisfaction From Energy Use," Ecological Economics, Elsevier, vol. 141(C), pages 43-52.
    20. Thorsten Beck & Asli Demirguc‐Kunt & Luc Laeven & Ross Levine, 2008. "Finance, Firm Size, and Growth," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(7), pages 1379-1405, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:142:y:2018:i:c:p:962-982. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.