04/13/2026
In March, Cuba was left in the dark for more than a day after fuel shortages triggered a nationwide blackout affecting millions. The event followed several major outages in recent years, from Texas to Chile, to Spain and Portugal.
How do these blackouts impact local economies?
A new study by EPIC scholar Koichiro Ito of The University of Chicago Harris School of Public Policy and co-authors Luis E. Gonzales and Mar Reguant examines Chile’s 2025 blackout and finds the impacts can be significant: a several-hour outage resulted in $36 million in lost economic activity, highlighting the potential value of investing in grid infrastructure.
“To build reliable power systems, we need a clear grasp of both the immediate and longer-term impacts of large-scale blackouts. This is vital information for guiding decisions to make our grid more resilient ahead of an outage, and for restoring power after an outage happens,” says Ito.
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In March, Cuba was in the dark for more than a day after fuel shortages caused a nationwide blackout affecting tens of millions. The event came after several other power outages that caught headlines in recent years. How do these nationwide blackouts impact the economy? A new study of a 2025 blackou...