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

We estimate the effects of electricity shortages on Indianmanufacturers, instrumenting with supply shifts from hydroelectricpower availability. We estimate that India's average reported level ofshortages reduces the average plant's revenues and producer surplusby 5 to 10 percent, but average productivity losses are significantlysmaller because most inputs can be stored during outages. Shortagesdistort the plant size distribution, as there are significant economiesof scale in generator costs and shortages more severely affect plantswithout generators. Simulations show that offering interruptibleretail electricity contracts could substantially reduce the impacts ofshortages. (JEL D24, L60, L94, O13, O14, Q41)