| Publications [#324301] of Allan Collard-Wexler
Journal Articles
- Allcott, H; Collard-Wexler, A; O'Connell, SD, How Do Electricity Shortages Affect Industry? Evidence from India,
American Economic Review, vol. 106 no. 3
(March, 2016),
pp. 587-624
(last updated on 2024/04/22)
Abstract: We estimate the effects of electricity shortages on Indian
manufacturers, instrumenting with supply shifts from hydroelectric
power availability. We estimate that India's average reported level of
shortages reduces the average plant's revenues and producer surplus
by 5 to 10 percent, but average productivity losses are significantly
smaller because most inputs can be stored during outages. Shortages
distort the plant size distribution, as there are significant economies
of scale in generator costs and shortages more severely affect plants
without generators. Simulations show that offering interruptible
retail electricity contracts could substantially reduce the impacts of
shortages. (JEL D24, L60, L94, O13, O14, Q41)
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