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The capital budgeting process and the energy trilemma - a strategic conduct analysis

The capital budgeting process and the energy trilemma - a strategic conduct analysis

Warren, Liz ORCID: 0000-0002-1441-9369 and Jack, Lisa (2018) The capital budgeting process and the energy trilemma - a strategic conduct analysis. British Accounting Review, 50 (5). pp. 481-496. ISSN 0890-8389 (doi:

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This paper examines capital budgeting and its role in the ‘energy trilemma’. The key focus is on the role of knowledgeable agency in the analysis of strategic conduct. In particular, this study demonstrates how accounting tools can be used by executive managers, who, whilst dominant in their own organisations, are themselves subordinate to the government in the United Kingdom and at the European level. The strategic conduct of actors is examined in a narrative, theorised case study setting spanning an 11-year period from 2006 to 2017. The principal contribution to knowledge from this study is the extent to which strategic investment accounting has played a role in changing regulatory and government policy in a privatised industry. The government and regulators, were forced to take the generators’ concerns seriously, because the generators (based on knowledge derived from capital budgets) restricted their capital expenditure rather than mobilising their resources. The generators highlighted that not only was this a problem of environmental sustainability and price for consumers, but also one of long-term supply; arguing that the government had to address all aspects of the trilemma when creating policy.

Item Type: Article
Uncontrolled Keywords: Capital Budgeting, investment appraisal, uncertainty, environmental regulation, Large Combuston Plant Directive, knowledgeable agency, strategic conduct
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
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: 20 Jun 2019 01:38
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: GREAT c
Selected for GREAT 2019: GREAT 2

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