When:
Thursday, October 16, 2025
3:30 PM - 5:00 PM CT
Where: Kellogg Global Hub, 1410, 2211 Campus Drive, Evanston, IL 60208 map it
Audience: Faculty/Staff - Student - Post Docs/Docs - Graduate Students
Contact:
Mariya Acherkan
mariya.acherkan@northwestern.edu
Group: Department of Economics: Seminar in Development Economics
Category: Academic
Ludovica Mosillo (Northwestern): The Inequitable Impact of Equal Rationing: The Case of Load Shedding in South Africa
Abstract: This paper examines how the unreliability of the electrical grid affects economic inequality by analyzing the effects of South Africa’s system of rotating power outage implemented between 2019 and 2024. I use a novel methodology that matches daily satellite luminosity data with outages schedules to estimate the geographical extent of power outages. I find that areas with the highest concentration of low-income households experience an additional 28% decrease in nighttime luminosity during power outages compared to the wealthiest areas. This differential exists despite equal exposure to outages across the income distribution. Consistent with richer households adapting to power outages by installing fuel-operated generators, I show that the differential impact is reduced when oil prices increase. Work in progress will complement these results with the analysis of smartphone geolocation data, which will investigate the changes in economic conditions caused by the differential effects of power outages.