The effect of electricity losses on GDP in Benin

The current study has assessed the losses of GDP caused by electricity losses in Benin over the period 1980-2014. The technique used was the Autoregressive Distributive Lags (ARDL). Results showed that in the long run Benin loses 0.16% of its GDP on average because of electricity losses. Benin is a country which faces important losses of electricity. A financing mechanism of the cost associated with reduction of electricity losses has been proposed in the national policy framework for electricity. By investigating the gain in GDP resulting from a reduction in electricity losses, the current study has assessed the feasibility of such mechanism, and thus contributes to the advancement of energy efficiency policy in Benin.