Middle East Association Meeting, Illinois, United States Of America, 6 January - 07 October 2021
Electricity is a widely used form of energy and has many uses in our day-to-day life. Therefore illegal electricity consumption, namely electricity theft, is a crucial problem in developing and developed countries. This study aims to find the relationship between immigration and illegal electricity consumption. As far as we know, this is the first study to explore this relationship empirically. In this study, we use panel data and difference in differences estimation methods. Because Turkey had a random immigration influx and most of Turkey's immigrants' population consists of Syrian immigrants, we take Syrian immigrants in Turkey as a case study. We use data of electricity theft and loss rate of 27 provinces and their socio-economic data for 2009-2016. Using the panel data fixed effects and difference in differences estimations, we find that immigrant influx significantly impacts illegal electricity consumption. Moreover, the unemployment rate, privatization, population density, and amount of agricultural land have significant effects on illegal electricity consumption in our models.
Keywords: Electricity consumption, electricity theft, immigration, difference-in-differences