000			01366nam a22001457a 4500
999			_c514510 _d514510
008			201110b ||||| |||| 00| 0 eng d
100			_aBurgess, Robin _922084
245			_aThe consequences of treating electricity as a right
260			_aThe Journal of Economic Perspectives
300			_a34(1), Winter, 2020: p.240-247
520			_aThis paper seeks to explain why billions of people in developing countries either have no access to electricity or lack a reliable supply. We present evidence that these shortfalls are a consequence of electricity being treated as a right and that this sets off a vicious four-step circle. In step 1, because a social norm has developed that all deserve power independent of payment, subsidies, theft, and nonpayment are widely tolerated. In step 2, electricity distribution companies lose money with each unit of electricity sold and in total lose large sums of money. In step 3, government-owned distribution companies ration supply to limit losses by restricting access and hours of supply. In step 4, power supply is no longer governed by market forces and the link between payment and supply is severed, thus reducing customers' incentives to pay. The equilibrium outcome is uneven and sporadic access that undermines growth.
773			_aThe Journal of Economic Perspectives
906			_aPOWER SUPPLY
942			_cAR