Keywords :
East Africa; Electricity losses; Quality performance gap; Business and International Management; Transportation; Sociology and Political Science; Economics and Econometrics; Economics, Econometrics and Finance (miscellaneous); Energy (all); Economics, Econometrics and Finance (all); Law; General Economics, Econometrics and Finance; General Energy
Abstract :
[en] The electricity sector in East Africa is characterized by high levels of electricity losses. The literature has extensively focused on investments and policy reforms that can potentially reduce losses. In this paper, we follow another approach by nonparametrically estimating the minimal losses given the actual inputs, outputs and electricity generation process. Minimal losses are then compared to actual losses to construct quality performance indicators. Using a tailored database for six East African countries over 10 years, we show that electricity losses could be reduced by 8%, representing savings of approximately $60 million per year.
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