Replication data for: How Do Electricity Shortages Affect Industry? Evidence from India

Principal Investigator(s): View help for Principal Investigator(s) Hunt Allcott; Allan Collard-Wexler; Stephen D. O'Connell

Version: View help for Version V1

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replication_archive_AER_september_2015			10/12/2019 02:08:AM
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Project Citation:

Allcott, Hunt, Collard-Wexler, Allan, and O’Connell, Stephen D. Replication data for: How Do Electricity Shortages Affect Industry? Evidence from India. Nashville, TN: American Economic Association [publisher], 2016. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E112983V1

Project Description

Summary: 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)

Scope of Project

JEL Classification:
      D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      L60 Industry Studies: Manufacturing: General
      L94 Electric Utilities
      O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
      O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
      Q41 Energy: Demand and Supply; Prices

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V1 [2019-10-12]

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