Decarbonization and electrification will require a transformed electricity grid. Our long-run model of entry and exit of generation and storage capacity captures crucial aspects of the electricity industry such as time-varying demand for electricity, intermittency of renewables, and...

In many countries, unreliable inputs, particularly those lacking storage, can significantly limit a firm's productivity. In the case of an increasing frequency of blackouts, a firm may change factor shares in a number of ways. It may decide to self generate electricity, to purchase intermediate...

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...