Department of Economics

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Browsing Department of Economics by Author "Mubiinzi, Geoffrey"

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    Efficient tariff system in the electricity distribution: evidence from Uganda
    (Sciencedomain International, 2024-03-27) Ssebabi Mutumba, Geoffrey; Amerit, Bosco; Kaddu, Milly; Mubiinzi, Geoffrey; Bashir, Hassan; Birungi, Felister; Nakajubi, Florence; Jaza , Muhamood; Senyonga, Livingstone
    This study investigates incentive regulation to foster an efficient tariff system in the electricity distribution subsector in Uganda. This study seeks to find empirical evidence to support the argument that regulation is associated with efficiency among distributors. It seeks to design an appropriate model of incentive regulation within the distribution subsector. It assesses the efficiency of existing tariff setting system with a view of guiding policy on how best incentives should be appropriated. It uses the data envelopment analysis and stochastic frontier analysis to investigate how distribution firms use input costs to come up with an efficient end user tariffs. Quarterly data used is from Electricity Regulatory Authority (ERA) covering the period 2013-2019. The findings are that distribution firms cost inputs are inconsistent with the way they their operational and maintenance costs are generated and transmitted to end user tariff. The regulator should be keen on the way tariff is set such that it is fair to all players in the electricity markets. Incentive regulation has a positive influence on cost efficiency and end user tariff. A reduction in energy losses and energy purchases from transmitter makes up the most efficient cost drivers. Lastly, tariff regulation has increased efficiency in operations through in improved quality and reliability of power distribution. First and foremost is reduced load shedding, secondly is more reliable power distribution to end users. Appropriate Incentive regulation has a direct effect on cost of utility and in increasing access of vulnerable groups.
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    Electricity consumption and economic growth: evidence from the East African community
    (Elsevier, Science Direct, 2024-07) Ssebabi Mutumba, Geoffrey; Mubiinzi, Geoffrey; Amwonya, David
    This study investigates the dynamic causal relationship between electricity consumption and economic growth in the East African Community (1990–2021). It seeks to interrogate the nature of relationship between electricity consumption and economic growth. The hypothesis used in this study is four folded including growth, conservation, feedback and neutral hypothesis. It uses panel data estimation techniques, particularly the panel dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), and non-linear autoregressive distributed lag (NARDL). The panel augmented Dickey Fuller (ADF)-fisher and Levin, Lin & Chu (LLC), 2003, was used to test the unit root process. Dumitreschu-Hurlin (2012) and pairwise Granger tests were used to test for the direction of causality. The findings indicate growth hypothesis with a unidirectional relationship running from electricity consumption to economic growth. Regional governments must increase their investments in electricity market trading to boost economic growth. Greater benefits from regional cooperation can be realized with increased investment in electricity consumption. This is a novel study of the dynamic causal relationship between electricity consumption and economic growth in the East African Community. It is a ground-breaking inquiry into the possibility of integrating electricity markets and their role in promoting economic growth.