Abstract

http://ssrn.com/abstract=1978446
 
 

References (21)



 


 



Costly Blackouts? Measuring Productivity and Environmental Effects of Electricity Shortages


Karen Fisher-Vanden


Pennsylvania State University

Erin T. Mansur


Dartmouth College - Dartmouth Economics Department; National Bureau of Economic Research (NBER)

Qiong (Juliana) Wang


University of Southern California

December 30, 2011


Abstract:     
In many countries, unreliable inputs, particularly those lacking storage, can significantly limit a firm's productivity. We examine industrial enterprises response to China's severe power shortages around 2003. Fast-growing demand coupled with regulated electricity prices led to blackouts varying over location and time. Our results suggest that enterprises shift from energy (both electric and non-electric sources) into materials - a shift from "make" to "buy." Textiles, timber, chemicals, and metals exhibit the largest effects. Contrary to the literature, we do not find greater self generation. We find that these productivity changes, while costly to firms, led to small reductions in carbon emissions.

Number of Pages in PDF File: 30

Keywords: Productivity, Electricity, Blackouts, China

JEL Classification: D24, Q4, P2, L9

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Date posted: January 2, 2012  

Suggested Citation

Fisher-Vanden, Karen and Mansur, Erin T. and Wang, Qiong (Juliana), Costly Blackouts? Measuring Productivity and Environmental Effects of Electricity Shortages (December 30, 2011). Available at SSRN: http://ssrn.com/abstract=1978446 or http://dx.doi.org/10.2139/ssrn.1978446

Contact Information

Karen Fisher-Vanden
Pennsylvania State University ( email )
University Park
State College, PA 16802
United States
Erin T. Mansur (Contact Author)
Dartmouth College - Dartmouth Economics Department ( email )
Hanover, NH 03755
United States
603 646 2531 (Phone)
603 646 2122 (Fax)
HOME PAGE: http://www.dartmouth.edu/~mansur/
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Qiong (Juliana) Wang
University of Southern California ( email )
Los Angeles, CA 90089
United States
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References:  21

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