Verlag:
Department of Economics, Queen's University, Kingston, Ontario, Canada
This paper takes on a novel perspective to the overloading of distribution substations by considering the common-pool characteristics of electric infrastructure capacity. Using firmand substation-level data from a sample of Nepalese firms, the...
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ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
Signatur:
DS 216
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keine Fernleihe
This paper takes on a novel perspective to the overloading of distribution substations by considering the common-pool characteristics of electric infrastructure capacity. Using firmand substation-level data from a sample of Nepalese firms, the results provide evidence of common-pool resource (CPR) problems across substations' ownership boundaries: firms with captive substations experience fewer and shorter unplanned outages than firms connected to shared substations. Based on these findings, private investments in captive substations emerge as a coping mechanism against unreliable electricity supply. Lastly, an appraisal framework for such investments is developed and used to quantify the economic benefits to Nepal's economy.