Although electricity quality is an important input for development and growth, the literature about its determinants quality is scarce. Therefore, this article is the first proposing a cross-country analysis identifying the determinants of the quality of electricity supply at a global level. In this analysis, 138 countries at different development stages have been considered and data are sourced in the Global Competitiveness Report (2016)(2017), Worldwide Governance Indicators (WGI) and the World Development Indicators (WDI). The Findings confirm the importance of institutional infrastructures such as regulation quality, government effectiveness and rule of law, but also other parameters such as, Foreign Direct Investment and Technology Transfer, Availability of Latest Technology, the income of the population (gdp per capita) and the quality of the workforce (quality of education). The coherence of this empirical result is confirmed by the performances of developing countries which are lower than those of developed countries.
In many countries, governments anticipate energy consumption. In the electricity sector, heavy investments are required for improving and extending infrastructure quality in order to satisfy demand. Therefore, many governments, especially those of developing countries, are soliciting private investments in order to face contemporary challenges. This paper contributes to a scare literature about investment opportunity in the power sector but is relatively abundant about determinant of electricity demand. It aims to examine 1) The relationship between private investor and the government; 2) Electricity consumption on the one side and population size and GDP on the other side in Côte d'Ivoire. The analysis commenced by showing how far the return on investment, so the price level, is a determinant factor for the investor's decision to enter or reinvest in the electricity market. From an empirical point of view, the cointegration test confirmed the used of the Vector Error Correction Model (VECM). It shows a long-run relationship between, electricity consumption and the GDP and population. The Wald test indicates a causal relationship of electricity consumption on GDP. Moreover, an overview of demand forecast lets envisage business opportunities for investors through economic and regulatory perspective suggestions.
Though Electricity quality is important for development and economic growth, its performance remains relatively low in Côte d'Ivoire due to many factors such as grid aging, lack of necessary investment program, etc. This paper analyzes consumer's endorsement and willingness to pay (WTP) for an improved quality of electricity service. This matter is all the more important required investment for improving electricity quality that should be supported by consumers. Therefore, by using contingent valuation method, 1073 households and 98 Very Small Enterprises (VSEs) in 4 cities of the south-east of Côte d'Ivoire have been interviewed. Data have been analyzed by using, Chi square, correlations and OLS methods. The findings highlight that, neither households nor VSEs endorse to pay more for an improved quality of electricity for various reasons such as low income. For instance, 59.7% of household respondents do not endorse by mentioning having other priorities related to shelter, food, clothes or health. In the same way, VSEs mentioned their low incomes and tax level, etc. Moreover, the average amount of electricity bill and the willingness to accept (WTA) in compensation of abusive outages have a positive effect on household's WTP. Idem, the number of sensitive equipment, the willingness to accept in compensation of abusive outage and the cost per hour incurred by VSEs have a positive effect on the WTP. The average value of household's WTP is XOF 1003.07 and their WTA for outages lasting more than six hours is XOF 1595.41. The average value of VSE's WTP is XOF 4130.95 and their WTA in compensation of outages lasting more than two hours is XOF 4546.15.
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