EN
Energy Price Uncertainty and Investment: Firm Level Evidence from Indian Manufacturing Sector
Abstract
Uncertainty whatsoever has undoubtedly been deemed to be malevolent to the interests of investors. Theories of partial irreversibility of investment argue that uncertainty at the micro level negatively impacts the firm’s investment and thereby, at least, slow the process of capital accumulation. Therefore, the present study, empirically analyzes how energy price uncertainty affects investment decisions of manufacturing firms in India. A variety of panel data models are estimated using Generalized Method of Moments (GMM) with data pertaining to Indian manufacturing firms over the period 1992- 93 to 2013- 14. Results are consistent with irreversible investment literature on the supply side of production, which shows that energy uncertainty has a negative effect on the capital accumulation in the manufacturing sector and this effect transpires in the form of firm's inability to adjust its actual capital stock to match up to its potential desired capital stock as proposed by the investment theories.
Keywords
Details
Primary Language
English
Subjects
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Journal Section
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Publication Date
September 1, 2016
Submission Date
September 1, 2016
Acceptance Date
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Published in Issue
Year 2016 Volume: 6 Number: 3
APA
Acharya, R. H., & Sadath, A. C. (2016). Energy Price Uncertainty and Investment: Firm Level Evidence from Indian Manufacturing Sector. International Journal of Energy Economics and Policy, 6(3), 364-373. https://izlik.org/JA89GZ79DX
AMA
1.Acharya RH, Sadath AC. Energy Price Uncertainty and Investment: Firm Level Evidence from Indian Manufacturing Sector. IJEEP. 2016;6(3):364-373. https://izlik.org/JA89GZ79DX
Chicago
Acharya, Rajesh H., and Anver C. Sadath. 2016. “Energy Price Uncertainty and Investment: Firm Level Evidence from Indian Manufacturing Sector”. International Journal of Energy Economics and Policy 6 (3): 364-73. https://izlik.org/JA89GZ79DX.
EndNote
Acharya RH, Sadath AC (September 1, 2016) Energy Price Uncertainty and Investment: Firm Level Evidence from Indian Manufacturing Sector. International Journal of Energy Economics and Policy 6 3 364–373.
IEEE
[1]R. H. Acharya and A. C. Sadath, “Energy Price Uncertainty and Investment: Firm Level Evidence from Indian Manufacturing Sector”, IJEEP, vol. 6, no. 3, pp. 364–373, Sept. 2016, [Online]. Available: https://izlik.org/JA89GZ79DX
ISNAD
Acharya, Rajesh H. - Sadath, Anver C. “Energy Price Uncertainty and Investment: Firm Level Evidence from Indian Manufacturing Sector”. International Journal of Energy Economics and Policy 6/3 (September 1, 2016): 364-373. https://izlik.org/JA89GZ79DX.
JAMA
1.Acharya RH, Sadath AC. Energy Price Uncertainty and Investment: Firm Level Evidence from Indian Manufacturing Sector. IJEEP. 2016;6:364–373.
MLA
Acharya, Rajesh H., and Anver C. Sadath. “Energy Price Uncertainty and Investment: Firm Level Evidence from Indian Manufacturing Sector”. International Journal of Energy Economics and Policy, vol. 6, no. 3, Sept. 2016, pp. 364-73, https://izlik.org/JA89GZ79DX.
Vancouver
1.Rajesh H. Acharya, Anver C. Sadath. Energy Price Uncertainty and Investment: Firm Level Evidence from Indian Manufacturing Sector. IJEEP [Internet]. 2016 Sep. 1;6(3):364-73. Available from: https://izlik.org/JA89GZ79DX