Skip navigation

Using investment appraisal models in strategic negotiation: the cultural political economy of electricity generation

Using investment appraisal models in strategic negotiation: the cultural political economy of electricity generation

Warren, Elizabeth ORCID: 0000-0002-1441-9369 and Seal, Will (2018) Using investment appraisal models in strategic negotiation: the cultural political economy of electricity generation. Accounting, Organizations and Society, 70. pp. 16-32. ISSN 0361-3682 (doi:https://doi.org/10.1016/j.aos.2018.04.001)

[img] PDF (Author Accepted Manuscript)
19617 WARREN_Using_Investment_Appraisal_Models_in_Strategic_Negotiation_2018.pdf - Accepted Version
Restricted to Registered users only until 17 May 2020.

Download (1MB) | Request a copy

Abstract

Although accepting that the Discounted Cash Flow model of investment appraisal has well known technical limitations, researchers have begun to explore its performative properties. This paper demonstrates how the Discounted Cash Flow model frames negotiations between actors around narratives of economization, marketization and financialization in a regulated industry. Reconnecting economics and politics, the theory of Cultural Political Economy is used to interpret and evaluate an empirical study of Great Britain's electricity generating industry. Although alternative imaginaries, based on political and employment goals, have historically influenced investment decision making in the industry, the current narrative of investment appraisal is dominated by Discounted Cash Flow models. These models have allowed industry players to construct imaginaries of an investment hiatus, leading to the possibility of future power cuts and blackouts, and a need for guaranteed prices.

Item Type: Article
Uncontrolled Keywords: investment appraisal; performativity; cultural political economy; electricity generation
Subjects: H Social Sciences > HB Economic Theory
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA) > Centre for Governance, Risk & Accountability (CGRA)
Faculty of Business > Department of Accounting & Finance
Last Modified: 16 May 2019 09:27
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: GREAT a
Selected for GREAT 2019: GREAT 1
URI: http://gala.gre.ac.uk/id/eprint/19617

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics