Institutions, development and energy constraints. (1st January 2018)

• Record Type: Journal Article
• Authors: Mertzanis, Charilaos
• Is Part Of: Energy. Volume 142(2018)
• Page Start: 962
• Page End: 982
• Publication Date: 2018-01-01
• Subjects: Energy constraints -- Firm-specific characteristics -- Institutions -- Development; Power resources -- Periodicals; Power (Mechanics) -- Periodicals; Energy consumption -- Periodicals; 333.7905
• DOI: 10.1016/j.energy.2017.10.073
• Languages: English
• ISSNs: 0360-5442

Abstract

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. Highlights: Access to energy of firms remains a key policy concern for developing countries. Energy constraints can be predicted by the specific characteristics of firms. Energy constraints of firms can further be predicted by technical energy conditions. Firm-specific characteristics are shown to be broadly robust predictors of firms' energy constraints. Their predictive power differs among sectors of activity and regions and is mitigated by national economic and non-economic factors, such as development and institutions.