Many manufacturers in developing countries produce their own electricity because the public supply is unavailable or unreliable. The authors develop a model of the firm in which electricity is produced internally, with scale economies. The model explains the observed behavior (prevalent in Nigeria, common in Indonesia, and rare in Thailand) that firms supplement their purchases of publicly produced electricity with electricity produced internally...
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INFORMATION
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1996/05/31
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Document de travail de recherche sur les politiques
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WPS1605
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1
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1
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2010/07/01
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Why manufacturing firms produce some electricity internally
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Electricity
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