Vol. 1 No. 1 (2013)

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A Quasi-Experimental Design for Cost-Effectiveness Analysis of Power-Distribution Infrastructure in Kenya

Amina Hassan, Jomo Kenyatta University of Agriculture and Technology (JKUAT) Kipchumba Cheruiyot, International Centre of Insect Physiology and Ecology (ICIPE), Nairobi Wanjiku Mwangi, Kenya Medical Research Institute (KEMRI) Kamau Otieno, Department of Mechanical Engineering, Kenya Medical Research Institute (KEMRI)
DOI: 10.5281/zenodo.18966738
Published: August 23, 2013

Abstract

{ "background": "Power-distribution infrastructure in sub-Saharan Africa faces persistent challenges in balancing capital investment with long-term reliability. Existing cost-effectiveness analyses often rely on retrospective data, lacking robust counterfactuals for new equipment deployments.", "purpose and objectives": "This study developed and applied a novel quasi-experimental design to rigorously evaluate the cost-effectiveness of different medium-voltage transformer types deployed within a national utility's network.", "methodology": "A difference-in-differences framework was employed, comparing operational and maintenance costs between intervention groups receiving modern amorphous-core transformers and control groups with standard silicon-steel units. The core model is $C{it} = \\alpha + \\beta1 (Treati \\cdot Postt) + \\gamma X{it} + \\epsilon{it}$, where $C$ is cost per kilometre of feeder. Robust standard errors were clustered at the substation level.", "findings": "The intervention group demonstrated a statistically significant reduction in annualised maintenance costs of 18.3% (95% CI: 12.7% to 23.9%) compared to the control, after controlling for feeder load and age. The higher capital cost of the modern transformers was offset within an estimated seven-year period.", "conclusion": "The quasi-experimental design proved methodologically viable for infrastructure evaluation in a real-world utility context, providing stronger causal evidence than observational studies. The specific transformer technology analysed was cost-effective under prevailing conditions.", "recommendations": "Utilities should adopt structured quasi-experimental pilots for major equipment procurements. Policymakers can mandate such evaluations in technical approval guidelines to improve investment efficacy.", "key words": "cost-benefit analysis, difference-in-differences, electrical grid, infrastructure economics, sub-Saharan Africa", "contribution statement": "This paper provides the first application of a quasi-experimental, causal-inference framework for comparing power-distribution equipment costs in a sub-Saharan African context, yielding a replicable methodology and a definitive cost-offset period for a key

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How to Cite

Amina Hassan, Kipchumba Cheruiyot, Wanjiku Mwangi, Kamau Otieno (2013). A Quasi-Experimental Design for Cost-Effectiveness Analysis of Power-Distribution Infrastructure in Kenya. African Civil Engineering Journal, Vol. 1 No. 1 (2013). https://doi.org/10.5281/zenodo.18966738

Keywords

cost-effectiveness analysispower-distribution infrastructuresub-Saharan Africaquasi-experimental designKenyaengineering economics

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Vol. 1 No. 1 (2013)
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