Reliable electricity supply is critical to firm productivity and economic development, yet the determinants of electricity access and consumption remain poorly understood in many developing countries. Using firm-level data from the 2020 Survey on Electricity Consumption in Benin (ECEB 2020), this study examines corporate electricity demand as a two-stage process involving access to the electricity grid and subsequent electricity consumption. To account for the non-random nature of electricity access, the analysis employs a Heckman selection model. The results show that electricity access is primarily shaped by managerial education, grid availability, geographic location, and connection conditions. Rural firms are significantly less likely to obtain grid access than urban firms. Among connected firms, electricity consumption is positively associated with preferential tariffs and public ownership, while power outages, electricity resale activities, and the use of alternative energy sources are associated with lower levels of electricity use. The findings suggest that corporate electricity demand is jointly influenced by infrastructure constraints and demand-side incentives. They further indicate that policies aimed at promoting productive electricity use should combine investments in network expansion and service reliability with appropriately targeted tariff incentives. By jointly modelling electricity access and consumption decisions, this study contributes new evidence on firm-level energy demand in a developing-country context.
