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The Impact of Power Rationing on Zambia's Agricultural Sector

Author

Listed:
  • Samboko, Paul
  • Chapoto, Antony
  • Kuteya, Auckland
  • Kabwe, Stephen
  • Mofya-Mukuka, Rhoda
  • Mweemba, Bruno
  • Munsaka, Eustensia

Abstract

A lack of electricity has devastating consequences for any economy. Since early 2015, Zambia experienced a 2,100 gigawatt-hours (GWh) power deficit triggering countrywide power rationing. We assess the impact of power rationing on Zambia’s agricultural sector, and the costs to firms operating in the agricultural sector. Our analysis reveals economy-wide losses amounting to ZMW 32,496,100,813 (representing 18.8% of the GDP). Losses to the agricultural sector are estimated at ZMW 2,827,160,771 (representing 1.6% of the GDP), and are likely to stifle future economic growth.

Suggested Citation

  • Samboko, Paul & Chapoto, Antony & Kuteya, Auckland & Kabwe, Stephen & Mofya-Mukuka, Rhoda & Mweemba, Bruno & Munsaka, Eustensia, 2016. "The Impact of Power Rationing on Zambia's Agricultural Sector," Food Security Collaborative Working Papers 245111, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midcwp:245111
    DOI: 10.22004/ag.econ.245111
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    References listed on IDEAS

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    1. Stephen O'Connell & Allan Collard-Wexler & Hunt Allcott, 2015. "How Do Electricity Shortages A\00ffect Production? Evidence from India," 2015 Meeting Papers 159, Society for Economic Dynamics.
    2. Ansar, Atif & Flyvbjerg, Bent & Budzier, Alexander & Lunn, Daniel, 2014. "Should we build more large dams? The actual costs of hydropower megaproject development," Energy Policy, Elsevier, vol. 69(C), pages 43-56.
    3. Tembo, Solomon & Sitko, Nicholas, 2013. "Technical Compendium: Descriptive Agricultural Statistics and Analysis for Zambia," Food Security Collaborative Working Papers 155988, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Sahbi FARHANI & Jaleleddine BEN REJEB, 2015. "Link between Economic Growth and Energy Consumption in Over 90 Countries," Working Papers 2015-614, Department of Research, Ipag Business School.
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    Cited by:

    1. Bridget Bwalya Umar & Chibuye Florence Kunda-Wamuwi, 2022. "Socio-Economic Effects of Load Shedding on Poor Urban Households and Small Business Enterprises in Lusaka, Zambia," Energy and Environment Research, Canadian Center of Science and Education, vol. 9(2), pages 1-20, December.
    2. Sudha Bala Krishnan & Teresa Peterburs, 2017. "Zambia Jobs in Value Chains," World Bank Publications - Reports 27007, The World Bank Group.
    3. Ali, Akhter & Rahut, Dil Bahadur & Imtiaz, Muhammad, 2019. "Effects of Pakistan's energy crisis on farm households," Utilities Policy, Elsevier, vol. 59(C), pages 1-1.

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    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy;

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