The Power Crunch and Firms' Anticipatory Investment: Evidence from Manufacturing SMEs in China

Cheng, D; Shi, X

The Power Crunch and Firms' Anticipatory Investment: Evidence from Manufacturing SMEs in China

Cheng, D Shi, X

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Publisher:: SAGE PUBLICATIONS INC
Publication Type:: Journal Article
Citation:: ENERGY JOURNAL, 2024, 45, (3), pp. 153-176
Issue Date:: 2024-05

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Field	Value	Language
dc.contributor.author	Cheng, D
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395
dc.date.accessioned	2025-06-23T00:09:41Z
dc.date.available	2025-06-23T00:09:41Z
dc.date.issued	2024-05
dc.identifier.citation	ENERGY JOURNAL, 2024, 45, (3), pp. 153-176
dc.identifier.issn	0195-6574
dc.identifier.issn	1944-9089
dc.identifier.uri	http://hdl.handle.net/10453/187847
dc.description.abstract	Using manufacturing survey data from China, we study the relationship between firms’ anticipatory investment (or in other words, willingness to invest) in the short-run future and their perception of the current power crunch for small and medium-sized enterprises (SMEs). Our findings reveal a robust and significant negative association, suggesting a sizable persistent negative impact of the power crunch on firms’ investment lingering over at least a couple of months. The dynamic impacts are very different at the industry level, with electricity-dependent industries appearing to take more hits. However, we find no statistically significant evidence to support the channel of electricity dependence in comparison with the channel of capacity utilization. Moreover, we show that firms of smaller size suffer disproportionately larger damage in future investment, which highlights the importance of caring about SMEs, relative to big firms.
dc.language	English
dc.publisher	SAGE PUBLICATIONS INC
dc.relation.ispartof	ENERGY JOURNAL
dc.relation.isbasedon	10.5547/01956574.45.3.dche
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1402 Applied Economics
dc.subject.classification	Energy
dc.subject.classification	4004 Chemical engineering
dc.subject.classification	4008 Electrical engineering
dc.subject.classification	4012 Fluid mechanics and thermal engineering
dc.title	The Power Crunch and Firms' Anticipatory Investment: Evidence from Manufacturing SMEs in China
dc.type	Journal Article
utslib.citation.volume	45
utslib.for	1402 Applied Economics
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/DVC (International)
pubs.organisational-group	University of Technology Sydney/DVC (International)/Australia-China Relations Institute
utslib.copyright.status	open_access	*
dc.rights.license	This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0). To view a copy of this license, visit https://creativecommons.org/licenses/by/4.0/
dc.date.updated	2025-06-23T00:09:40Z
pubs.issue	3
pubs.publication-status	Published
pubs.volume	45
utslib.citation.issue	3

Abstract:

Using manufacturing survey data from China, we study the relationship between firms’ anticipatory investment (or in other words, willingness to invest) in the short-run future and their perception of the current power crunch for small and medium-sized enterprises (SMEs). Our findings reveal a robust and significant negative association, suggesting a sizable persistent negative impact of the power crunch on firms’ investment lingering over at least a couple of months. The dynamic impacts are very different at the industry level, with electricity-dependent industries appearing to take more hits. However, we find no statistically significant evidence to support the channel of electricity dependence in comparison with the channel of capacity utilization. Moreover, we show that firms of smaller size suffer disproportionately larger damage in future investment, which highlights the importance of caring about SMEs, relative to big firms.

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http://hdl.handle.net/10453/187847