On August 14, 2003, the U.S. faced the largest blackout in history, which left over 50 million people without electricity in eight U.S. states and part of Canada. This paper investigates the effects of the blackout on the security values of the U.S. electric utilities and manufacturing firms in the electric power equipment industry, using an event study method. The results of this empirical study show that the electric utilities were negatively affected, but the electrical equipment manufacturing firms were significantly, positively affected.
Bibliographical noteFunding Information:
Manuscript received February 16, 2007. This work was supported by MOCIE under the EIRC program with APSRC at Korea University. Paper no. TPWRS-00117-2007. S.-K. Joo is with the School of Electrical Engineering, Korea University, Seoul, Korea (e-mail: firstname.lastname@example.org). J.-C. Kim is with the Department of Finance, College of Business, North Dakota State University, Fargo, ND 58105 USA (e-mail: email@example.com). C.-C. Liu is with the Department of Electrical and Computer Engineering, Iowa State University, Ames, IA 50011 USA (e-mail: firstname.lastname@example.org). Digital Object Identifier 10.1109/TPWRS.2007.901278
- Electric utilities
- Risk analysis
ASJC Scopus subject areas
- Energy Engineering and Power Technology
- Electrical and Electronic Engineering