Is the Electricity Sector a Weak Link in Development? / Jonathan M. Colmer, David Lagakos, Martin Shu.

By:

Colmer, Jonathan M

Contributor(s):

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w32041.Publication details: Cambridge, Mass. National Bureau of Economic Research 2024.Description: 1 online resource: illustrations (black and white)Subject(s):

Other classification:

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: This paper asks whether increasing productivity in the electricity sector can yield larger long-run GDP gains than suggested by electricity's small share of aggregate economic activity. We answer this question using a dynamic multi-sector model in which electricity is a strong complement to other inputs in production. We parameterize the model using our own new measures of electricity-sector TFP across countries. The model predicts modest long-run GDP gains from improving electricity-sector TFP, contrary to the notion that electricity is a weak link. Parameterizations that make electricity a weak link mostly require the electricity sector to be counterfactually large or unproductive.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w32041 (Browse shelf(Opens below))	Not For Loan

Total holds: 0

Collection: Colección NBER Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	nber w32039 A Scalable Approach to High-Impact Tutoring for Young Readers: Results of a Randomized Controlled Trial /	nber w3204 The Long-Run Behavior of Velocity: The Institutional Approach Revisited /	nber w32040 What Works and For Whom? Effectiveness and Efficiency of School Capital Investments Across The U.S. /	nber w32041 Is the Electricity Sector a Weak Link in Development? /	nber w32042 Local Variation in Onsite Work during the Pandemic and its Aftermath /	nber w32043 Stated Preference Estimates of the Average Social Cost of Carbon /	nber w32044 The Puzzling Behavior of Spreads during Covid /	Next

January 2024.

This paper asks whether increasing productivity in the electricity sector can yield larger long-run GDP gains than suggested by electricity's small share of aggregate economic activity. We answer this question using a dynamic multi-sector model in which electricity is a strong complement to other inputs in production. We parameterize the model using our own new measures of electricity-sector TFP across countries. The model predicts modest long-run GDP gains from improving electricity-sector TFP, contrary to the notion that electricity is a weak link. Parameterizations that make electricity a weak link mostly require the electricity sector to be counterfactually large or unproductive.