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Article
Publication date: 19 June 2019

De-Graft Owusu-Manu, Adam Braimah Jehuri, David John Edwards, Frank Boateng and George Asumadu

This paper aims to assess the impact of infrastructure development on Ghana’s economic growth.

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Abstract

Purpose

This paper aims to assess the impact of infrastructure development on Ghana’s economic growth.

Design/methodology/approach

Using data obtained from the World Bank’s World Development Indicators, the United States’ (US) International Energy Statistics and the Central Intelligence Agency’s (CIA) Factbooks from 1980 to 2016, an autoregressive distributed lag (ARDL) framework is used to determine the long- and short-run impact of the selected infrastructure stock and quality indices on Ghana’s economic growth.

Findings

Findings indicate a statistically significant relationship between infrastructure development and economic growth. Additionally, electricity-generating capacity is identified as the infrastructure stock index that has the greatest positive impact on Ghana’s economic growth. The study reveals that electricity-distribution loss has a significant negative effect over both long- and short-run periods.

Research limitations/implications

Commercial petroleum export from Ghana since 2010 has been a key contributor to economic growth. Although its aggregate effect is included in the annual GDP figures adopted for the study, the authors would have wished to assess its impact on GDP as an independent standard growth determinant. However, because of a lack of available data over this study period, petroleum exports could not be adopted as an independent standard growth determinant. Additionally, an aggregated index of infrastructure stock and quality could not be derived because of the small size of data available. Hence, this study did not assess its impact on Ghana’s economic growth.

Practical implications

The research provides pragmatic guidance to policymakers to focus their efforts on expanding electricity-generating capacity while simultaneously taking steps to curb electricity transmission and distribution losses. These two related actions offer the greatest positive impact on infrastructure development and, as a consequence, Ghana’s economic growth.

Originality/value

This paper represents the first attempt to empirically study the relationship between infrastructure development and Ghana’s economic growth. A key contribution to the existing body of knowledge includes strong evidence of a positive effect of infrastructure development upon Ghana’s economic growth. Results also reveal that the greatest positive impact on economic growth is derived from electricity-generation capacity. However, the study also uncovers a negative, but statistically significant, relationship between road and economic growth.

Details

Journal of Financial Management of Property and Construction , vol. 24 no. 3
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 11 January 2023

Amogelang Marope and Andrew Phiri

The purpose of this study is to quantify the impact of electricity power outages on the local housing market in South Africa.

Abstract

Purpose

The purpose of this study is to quantify the impact of electricity power outages on the local housing market in South Africa.

Design/methodology/approach

This study uses the autoregressive distributive lag (ARDL) and quantile autoregressive distributive lag (QARDL) models on annual time series data, for the period 1971–2014. The interest rate, real income and inflation were used as control variables to enable a multivariate framework.

Findings

The results from the ARDL model show that real income is the only factor influencing housing price over the long run, whereas other variables only have short-run effects. The estimates from the QARDL further reveal hidden cointegration relationship over the long run with higher quantile levels of distribution and transmission losses raising the residential price growth.

Research limitations/implications

Overall, the findings of this study imply that the South African housing market is more vulnerable to property devaluation caused by power outages over the short run and yet remains resilient to loadshedding over the long run. Other macro-economic factors, such as real income and inflation, are more influential factors towards long-run developments in the residential market.

Originality/value

To the best of the authors’ knowledge, this is the first study to examine the empirical relationship between power outages and housing price growth.

Details

International Journal of Housing Markets and Analysis, vol. 17 no. 3
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 2 October 2017

Alireza Heidari, Alireza Aslani and Ahmad Hajinezhad

Energy has a strategic role in the social and economic development of countries. Affordability, accessibility and availability of energy sources are the priorities of the…

Abstract

Purpose

Energy has a strategic role in the social and economic development of countries. Affordability, accessibility and availability of energy sources are the priorities of the governments in energy supply. Therefore, understanding the robustness of energy supply is an important subject of energy researchers and policymakers. This paper aims to analyze the robustness of the electricity system at the national level.

Design/methodology/approach

First, the strengths, weaknesses, opportunities and threats analysis is implemented for a selected case study. Then, the expert panel weighed the parameters’ effect on sustainable power generation, the survey is quantified using fuzzy logic. Finally, cross functional analysis is applied to evaluate the influence/dependence of the parameters.

Findings

The results show three determinant parameters which have the most influence on the system: fluctuations in oil prices, governmental acts and sanctions against the country. The most dependent parameters, as objectives variables, are the share of renewables and distributed generation (DG), system reliability, power generation diversity and transmission efficiency.

Originality/value

Using future studies methods in the energy level at the nation level has been done for the first time in the current work.

Details

Journal of Science and Technology Policy Management, vol. 8 no. 3
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 4 April 2016

Åsa Grytli Tveten and Torjus Folsland Bolkesjø

The purpose of this study is to analyze the power market and greenhouse gas (GHG) emission effects of the joint Norwegian–Swedish tradable green certificates (TGCs) market, which…

Abstract

Purpose

The purpose of this study is to analyze the power market and greenhouse gas (GHG) emission effects of the joint Norwegian–Swedish tradable green certificates (TGCs) market, which is established to support investments according to a 26.4 TWh increased annual renewable electricity generation (REG) by 2020.

Design/methodology/approach

The study applies an energy system model with high granularity in time and space, and detailed power system data for the Nordic countries, Germany, The Netherlands and UK.

Findings

The results show that the TGC scheme will cause a 8.7-9.3 /MWh reduction in average electricity prices in the Nordic countries. The price decrease will to a limited extent pass through to Germany, The Netherlands and UK. When assuming a low carbon price level, the new REG will reduce annual GHG emissions by 10.9 Mtonnes in 2020, primarily through substitution of German natural gas power. A sensitivity analysis shows that the GHG emission effect of the TGCs is highly sensitive to changes in the carbon price. Investment levels up to a 90 TWh increased REG per year are found to cause increasing GHG emission reductions.

Originality/value

The study results signal the importance of taking the TGC policy into account in decision-making processes in the Northern European power system, in particular for market actors in the Nordic area. The authors conclude that the Nordic countries potentially can play a vital role in a future Northern European low carbon power system through export of green balancing power, substitution of thermal power and reduced GHG emissions from the Northern European power sector.

Details

International Journal of Energy Sector Management, vol. 10 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 30 July 2020

Pavan Khetrapal

The objective of the present study is to evaluate and analyse the performance of Indian electricity distribution utilities post the implementation of landmark Electricity Act 2003.

Abstract

Purpose

The objective of the present study is to evaluate and analyse the performance of Indian electricity distribution utilities post the implementation of landmark Electricity Act 2003.

Design/methodology/approach

Stochastic frontier analysis (SFA) that incorporates exogenous influences on operational efficiency is adopted in the present study. Specifically, a stochastic frontier production function model with a technical inefficiency effects model (Battese and Coelli, 1995) is chosen as a preferred model. In this model, the function that explains the inefficiency scores is estimated in a single stage with the production technology. This avoids the problem of inconsistency which is possible in the two-stage approach.

Findings

The sample involved 52 Indian electricity distribution utilities for seven-year period from 2006 to 2013. Major findings of SFA show that Indian electricity distribution utilities post the implementation of Electricity Act (2003) had, on average, experienced efficiency improvement during the observed period. The overall mean technical effciency score is estimated as 78.5% which indicates that there exist wide scope for effciency improvement in the sector. Further, the empirical findings also indicate that publicly owned distribution utilities obtain average technical efficiencies of 71.3%, which is lower than privately owned distribution utilities, which achieve average technical efficiencies of 85.7%.

Research limitations/implications

Power supply quality indicators such as SAIFI, SAIDI, CAIFI, etc. and unobserved heterogeneity also influence the efficiency analysis of electricity distribution utilities. Hence, these parameters as explanatory variables can be incorporated in the future work.

Practical implications

The results obtained from this empirical study would likely be helpful for utility managers and policymakers to know how well they are performing, and how a better corporate strategy a particular utility can formulate to improve its operational efficiency and also its position in the marketplace.

Originality/value

This paper is amongst the first significant attempts that implement SFA approach to the panel dataset over a longer period of time – 2006 to 2013, so, as to evaluate and analyse the operational efficiency of Indian electricity distribution utilities in a single framework after the enactment of Electricity Act (2003). Unlike previous studies, this study investigates the degree to which various exogenous (or environmental) factors influence efficiency levels in these utilities.

Details

Journal of Advances in Management Research, vol. 17 no. 5
Type: Research Article
ISSN: 0972-7981

Keywords

Article
Publication date: 11 September 2018

Hannu Makkonen, Sini Nordberg-Davies and Rami Olkkonen

The article aims to further understanding of purchasing practices in post-outsourcing buyer–supplier relationships, and it provides a holistic approach and onceptualizations with…

Abstract

Purpose

The article aims to further understanding of purchasing practices in post-outsourcing buyer–supplier relationships, and it provides a holistic approach and onceptualizations with which to balance the perspectives of purchasing as an intra-firm operational function and as a strategic activity embedded in relationship and network management.

Design/methodology/approach

The research is based on an inductive-oriented case study. The data comprised 61 thematic interviews conducted at 17 buyer companies (electricity distribution companies), 11 service supplier companies and six third-party organizations. The case features a setting in which a growing number of electricity distribution companies have outsourced operational functions regarding network construction, maintenance and fault repair and purchased these services from service suppliers representing a developing service market.

Findings

The study explicates the role of purchasing as an element with the most impact on post-outsourcing buyer–supplier relationship outcomes and development. The performance of the buyer–supplier relationship either accelerates or inhibits the new service supplier’s entry to the field and motivates or demotivates the electricity distribution companies to outsource their activities. This mechanism links to the respective development of supplier markets and buyer industry transformation.

Originality/value

The focal study provides a holistic approach and conceptualizations with which to balance the perspectives of purchasing as an intra-firm operational function and as a strategic activity embedded in relationship and network management. In particular, the study provides conceptual development on purchasing practices in post-outsourcing relationships and concrete managerial implications for dealing with such circumstances. The focal study includes case notes that facilitate using the study for teaching purposes.

Details

Journal of Business & Industrial Marketing, vol. 33 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 14 October 2019

Alireza Fallahi, Fatemeh Fallahi, Hassan Sarhadi, S.F. Ghaderi and Reza Ebrahimi

This study evaluates the efficiency and productivity change of 39 electricity distribution companies in Iran over the period 2005-2014. For purposes of electricity management and…

Abstract

Purpose

This study evaluates the efficiency and productivity change of 39 electricity distribution companies in Iran over the period 2005-2014. For purposes of electricity management and utilization of scarce resources, Iran’s 33 provinces have been classified into five regions by the Ministry of the Interior. Analyzing the efficiency of distribution companies across these regions yields significant understanding of these resources and helps policymakers to generate more informed decisions.

Design/methodology/approach

The proposed method of this study develops nonparametric data envelopment analysis (DEA) with the consideration of geographic classification, size and type of company. At the first stage, a DEA model is used to estimate the relative technical efficiency and productivity change of these companies. At the second stage, distributions of efficiency improvements are examined based on geographic classification, size and type of the company type. A stability test is also conducted to verify the proposed model’s robustness.

Findings

The results demonstrate that the average technical efficiency of the companies increased during the years 2006-2009, but decreased during 2010-2014. The productivity measurement reveals that low efficiency change was the largest contributor to the small increase in productivity change rather than technology change. In addition, testing the hypothesis that the large and small companies have statistically the same efficiency scores revealed no statistical difference among them. Moreover, another test did not detect a difference among companies at the urban and provincial levels.

Practical implications

By applying this approach, policymakers and practitioners in the power industry at the country and corporate level can effectively compare the efficiency and productivity changes among electricity distribution companies, and therefore generate more informed decisions.

Originality/value

The paper’s novel concept applies DEA to Iran’s electricity distribution companies and analyzes them by examining geographic classification, size and the type of the companies. In addition, a stability test is conducted and productivity changes are estimated.

Details

International Journal of Energy Sector Management, vol. 15 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

Open Access
Article
Publication date: 5 February 2024

Oluwadamilola Esan, Nnamdi I. Nwulu, Love Opeyemi David and Omoseni Adepoju

This study aims to investigate the impact of the 2013 privatization of Nigeria’s energy sector on the technical performance of the Benin Electricity Distribution Company (BEDC…

Abstract

Purpose

This study aims to investigate the impact of the 2013 privatization of Nigeria’s energy sector on the technical performance of the Benin Electricity Distribution Company (BEDC) and its workforce.

Design/methodology/approach

This study used a questionnaire-based approach, and 196 participants were randomly selected. Analytical tools included standard deviation, Spearman rank correlation and regression analysis.

Findings

Before privatization, the energy sector, managed by the power holding company of Nigeria, suffered from inefficiencies in fault detection, response and billing. However, privatization improved resource utilization, replaced outdated transformers and increased operational efficiency. However, in spite of these improvements, BEDC faces challenges, including unstable voltage generation and inadequate staff welfare. This study also highlighted a lack of experience among the trained workforce in emerging electricity technologies such as the smart grid.

Research limitations/implications

This study’s focus on BEDC may limit its generalizability to other energy companies. It does not delve into energy sector privatization’s broader economic and policy implications.

Practical implications

The positive outcomes of privatization, such as improved resource utilization and infrastructure investment, emphasize the potential benefits of private ownership and management. However, voltage generation stability and staff welfare challenges call for targeted interventions. Recommendations include investing in voltage generation enhancement, smart grid infrastructure and implementing measures to enhance employee well-being through benefit plans.

Social implications

Energy sector enhancements hold positive social implications, uplifting living standards and bolstering electricity access for households and businesses.

Originality/value

This study contributes unique insights into privatization’s effects on BEDC, offering perspectives on preprivatization challenges and advancements. Practical recommendations aid BEDC and policymakers in boosting electricity distribution firms’ performance within the privatization context.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 19 September 2020

Mrigakshi Das

Resulting from large government interventions, India could attain 99% electrification in March 2019. However, the consequences are revenue losses due to lack of real-time efforts…

Abstract

Purpose

Resulting from large government interventions, India could attain 99% electrification in March 2019. However, the consequences are revenue losses due to lack of real-time efforts in bringing operational efficiencies of the power distribution companies (discoms). Distribution franchisees operate as agents to the discoms for performing their contracted functions in smaller high-loss making areas under jurisdiction of a discom. This study aims to explore how rural franchisees help or hinder requisite results.

Design/methodology/approach

A qualitative embedded multiple-case study was conducted. The case focused on two franchisees engaged in metering, billing and collection functions of a high-loss-making rural area dominated Indian state-owned discom. Data were collected through documents, personal observations and semi-structured in-depth interviews with franchisee employees situated at different levels of the organizational hierarchy. A review of pertinent literature and government documents was utilized in forming the codes for collecting the data.

Findings

It could be argued that franchisees with strong financial capability, human resources support and monitoring and control facilities could contribute effectively in generating revenue from rural and interior electrified mass. The analysis revealed various challenges serving as hindrances in achievement of contracted targeted outcomes. The analysis resulted in highlighting factors that if implemented could result in the needed outcome.

Practical implications

This study could be generalized only to similar socio-economic conditions. The findings could provide policy makers with valuable insights to emphasize on creating win–win situations for all the stakeholders to encourage franchisee participation.

Originality/value

This study is unique, as there is a dearth of empirical evidences relating to operational efficacies of these franchisees.

Details

Journal of Economic and Administrative Sciences, vol. 37 no. 3
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 26 August 2014

Samuli Honkapuro, Jussi Tuunanen, Petri Valtonen and Jarmo Partanen

– The purpose of the paper is to analyze the development needs and opportunities in the distribution system operators’ (DSO) tariff structures in the smart-grid environment.

Abstract

Purpose

The purpose of the paper is to analyze the development needs and opportunities in the distribution system operators’ (DSO) tariff structures in the smart-grid environment.

Design/methodology/approach

The impacts of the distribution pricing schemes for the stakeholders and their requirements for the tariff structures are evaluated by qualitative analyses. Furthermore, there is a case analysis concerning the practical development possibilities of the DSO tariff structures in Finland.

Findings

Major finding of the paper is that the demand-based power band tariff is the optimal solution for the DSO pricing structure, when taking into account the real-life limitations and the requirements of the stakeholders.

Practical implications

Outcomes of the paper can be applied in practice in design of the pricing schemes in the electricity distribution. Incentive provision impacts and cost reflectivity of the DSO tariffs can be improved by implementing the suggested pricing structure.

Originality/value

The paper provides a novel viewpoint on the study of the DSO tariff design by considering the impacts of the pricing for the stakeholders and their requirements for tariff structure. Furthermore, the real-life limitations in the tariff design have been taken into account by analyzing the development options in Finland. Results are useful, especially for the DSOs, regulators and academics, who are working with the tariff development issues.

Details

International Journal of Energy Sector Management, vol. 8 no. 3
Type: Research Article
ISSN: 1750-6220

Keywords

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