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GTAP Resources: Resource Display

GTAP Resource #6629

"Economic Supply Chain Impacts of Expanding Electricity Access in Kenya"
by Woollacott, Jared, Candise Henry, Alison Bean de Hernandez, Yongxia Cai and Chandler Cowell

Improved electricity access in developing countries is expected to offer an array of economic and environmental benefits. Much attention has been devoted to end-user benefits from electrification, but there are potential supply-side benefits from building and operating electricity generators that are less explored. In this work, we focus on supply-side constraints and benefits by examining investment barriers and supply chain impacts of recent and projected power plant construction projects in Kenya under the US Agency for International Development (USAID) Power Africa program. For planned and built projects, we value power sector construction and operating expenditures for projects from the past ten years using transaction data from USAID’s Power Africa Transaction Tracker alongside techno-economic data from the US National Renewable Energy Laboratory (NREL) Annual Technology Baseline and expenditure information from NREL’s International Jobs and Economic Development Impact (I-JEDI) tool. For future projects, we assess the likely costs of projected electricity expansion over the coming decades using data from Kenya’s Least Cost Development Plan. With a complete techno-economic characterization of Kenya’s past and future renewable projects, we then assess supply chain benefits of project construction and operation using the Global Trade Analysis Project (GTAP) 10 social accounting matrix. Analyzing components of these costs based on I-JEDI expenditure shares allows us to separate them by technology and expenditure type that we map to GTAP 10 sectors. We find that Power Africa has facilitated approximately $6.1 billion in direct investment in Kenya’s electricity sector over the past decade with greater than $X billion in indirect and $Y billion in induced wage impacts. Electricity projections suggest that inclusive of constructed facilities’ operations, direct, indirect, and induced wage impacts could equal as much as $Z billion.

Resource Details (Export Citation) GTAP Keywords
Category: 2022 Conference Paper
Status: Not published
By/In: Presented during the 25th Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2022
Created: Henry, C. (4/15/2022)
Updated: Henry, C. (6/9/2022)
Visits: 462
- Climate change policy
- Trade and the environment
- GTAP Data Base and extensions
- Supply chains
- Africa (East)

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