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Does country-risk influence electricity production worldwide?

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  • Sequeira, Tiago Neves
  • Santos, Marcelo Serra

Abstract

This paper investigates the relationship between country-risks (or conflicts) within countries and electricity production. The determinants of electricity production have been neglected in the literature that favours the relationship between energy consumption, growth and development, and despite of the major challenges on electricity supply systems. We empirically establish that weighted conflict index, as well as sub-items as anti-government demonstrations, government crises and riots negatively influence electricity production per capita, after controlling for income per capita. Country conflicts affect electricity production mostly in the long-run. Our results imply that conflicts may affect electricity production substantially and consequently the economy as a whole. Policy should emphasize the institutional framework to avoid conflicts within countries in order to secure electricity production.

Suggested Citation

  • Sequeira, Tiago Neves & Santos, Marcelo Serra, 2018. "Does country-risk influence electricity production worldwide?," Journal of Policy Modeling, Elsevier, vol. 40(4), pages 730-746.
    • Handle: RePEc:eee:jpolmo:v:40:y:2018:i:4:p:730-746
    DOI: 10.1016/j.jpolmod.2018.01.013
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    Cited by:

    1. Shettima, Abdulkadir & Elheddad, Mohammed & Bassim, Mohga & Alfar, Abdelrahman J.K., 2023. "The impact of conflict on energy poverty: Evidence from sub-Saharan Africa," Resources Policy, Elsevier, vol. 86(PA).
    2. Tiago Sequeira & Marcelo Santos, 2018. "Education and Energy Intensity: Simple Economic Modelling and Preliminary Empirical Results," Sustainability, MDPI, vol. 10(8), pages 1-17, July.
    3. 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.

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    More about this item

    Keywords

    Electricity production; Income; Conflicts; Country-risk; Institutions;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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