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Electricity Unit Value Prices and Purchase Quantities: U.S. Manufacturing Plants, 1963–2000

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Author Info

  • Steven J. Davis

    (University of Chicago, NBER, and American Enterprise Institute)

  • Cheryl Grim

    (Bureau of the Census)

  • John Haltiwanger

    (University of Maryland, Bureau of the Census, and NBER)

  • Mary Streitwieser

    (Bureau of Economic Analysis)

Abstract

We measure unit value electricity prices using 2 million annual observations on U.S. manufacturing plants from 1963 to 2000. These prices display tremendous cross-sectional dispersion, 85–95% of which reflects differences by plant location and purchase quantity. Spatial differentials decline markedly until the late 1980s for large purchasers but rise over time for small purchasers. Unit value price gaps between larger and smaller purchasers are enormous, diminish through the late 1970s, and then stabilize at still-high levels. There are major differences across states in cost and regulatory factors that we relate to the changing structure of unit value prices. No rights reserved. This work was authored as part of the Contributor's official duties as an Employee of the United States Government and is therefore a work of the United States Government. In accordance with 17 U.S.C. 105, no copyright protection is available for such works under U.S. law

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 95 (2013)
Issue (Month): 4 (October)
Pages: 1150-1165

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Handle: RePEc:tpr:restat:v:95:y:2013:i:4:p:1150-1165

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

Related research

Keywords: electricity; manufacturing;

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Cited by:
  1. Severnini, Edson R., 2014. "The Power of Hydroelectric Dams: Agglomeration Spillovers," IZA Discussion Papers 8082, Institute for the Study of Labor (IZA).

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