Efficiency and Ownership in Swedish Electricity Retail Distribution

Hjalmarsson, Lennart; Veiderpass, Ann

doi:10.1007/978-94-017-1923-0_2

Cited by 47 publications

(27 citation statements)

References 16 publications

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“…The set constitutes a four output -four input model covering Swedish electric distribution utilities, and was earlier applied in Hjalmarsson and Veiderpass (1992a) and (1992b), Kumbhakar and Hjalmarsson (1997) On the input side we use kilometers of low and high voltage power lines (K 1 , K 2 ) and total transformer capacity (K 3 ) in kVa as the capital variables. Labour L is measured in full time equivalent employees.…”

Section: Figure 2 the Vrs Production Function And Its Crs Envelopmentmentioning

confidence: 99%

Are all Scales Optimal in DEA? Theory and Empirical Evidence

Førsund

Hjalmarsson

2004

Journal of Productivity Analysis

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Policy recommendations concerning optimal scale of production units often have serious implications for the restructuring of a sector, while tests of natural monopoly have important implications for regulatory structure. The piecewise linear frontier production function framework is becoming the most popular one for assessing not only technical efficiency of operations, but also for scale efficiency and calculation of optimal scale sizes. The main purpose of the present study is to check if neoclassical production theory gives any guidance as to the nature of scale properties in the DEA model, and to empirically investigate such properties. The empirical results indicate that optimal scale may be found over almost the entire size variations in outputs and inputs, thus making policy recommendations about scale efficiency dubious. It is necessary to establish the nature of optimal scale before any practical use can be made. Proposals for such indexes that should be calculated are provided.

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Section: Figure 2 the Vrs Production Function And Its Crs Envelopmentmentioning

confidence: 99%

Are all Scales Optimal in DEA? Theory and Empirical Evidence

Førsund

Hjalmarsson

2004

Journal of Productivity Analysis

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“…Power markets in Europe tend to be highly concentrated (see, for instance, Enel in Italy and EDF in France) which restricts the available sample sizes. In Sweden, Kumbhakar and Hjalmarsson (1998), who challenge earlier findings by Hjalmarsson and Veiderpass (1992), conclude that private distributors are relatively more cost efficient. Fumagalli et al (2007) do not find any differences between public and private distributors in Italy when service quality is considered.…”

Section: Empirical Evidence For the Electricity Sectormentioning

confidence: 81%

Productivity in Electricity Retail after Market Liberalisation: Analysing the Effects of Ownership and Firm's Governance Structure

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract. This paper, which is one of the first to estimate productivity in retail electricity for a European country after liberalisation, analyses the effect of ownership and governance structure by using a unique dataset of German electricity retailers from 2003 to 2012. An innovative service production function for the retail sector is derived with labour and external services as the main inputs. A structural model is used with a proxy function for productivity to overcome the endogeneity of input choice. Ownership is controlled for in the law of motion for productivity. The results of the dataset used to validate the model show that firmlevel productivity did not increase after 2008 and that ownership had no effect on productivity. The results provide useful insights into the link between ownership and productivity in modern public enterprises after liberalisation. Terms of use: Documents inJEL Classification: D24, L11, C23, L94

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“…While Hjalmarsson and Veiderpass (1992) and Pollitt (1995) found that publicly owned and privately owned electricity distribution utilities exhibit no significant difference in efficiency, Bagdadioglu et al (1996) reporting on a study of the Turkish electricity distribution sector, and Kumbhahar and Hjalmarsson (1998) reporting on a study of the Swedish electricity distribution sector found that the privately owned companies operated more efficiently.…”

Section: Single-country Studiesmentioning

confidence: 99%

“…Given that urban concentration may affect efficiency, it is recommended that separate DEA analyses should be carried out for urban distributor and rural distributor groups, respectively, or that a variable relating to the geographical dispersion of customers should be included in the DEA model. Hjalmarsson and Veiderpass (1992) examined the productivity growth effect in electricity retail distribution in Sweden during the period from 1970 to 1986, also through a DEA framework, with productivity being measured by means of the Malmquist index. The study showed that productivity increased substantially over an extended period of time, that productivity growth of rural areas exceeded the growth in urban areas, and that productivity change was independent of ownership.…”

Section: Single-country Studiesmentioning

confidence: 99%

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Formative evaluation of electricity distribution utilities using data envelopment analysis

Santos

Amado

Rosado

2011

Journal of the Operational Research Society

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-The use of Data Envelopment Analysis (DEA) in the electricity distribution sector has been prolific in the number of papers published in research journals. However, while numerous studies have been documented, they have mostly been summative. Their aim has been predominantly descriptive and classificatory. This paper argues that evaluations of a formative nature are more effective than summative studies in promoting a better understanding of the structures and processes of electricity distribution utilities and, consequently, are more appropriate to contribute to performance improvement. To illustrate the use of DEA for formative evaluation, and highlight some of the difficulties of using DEA in practice, this paper compares the cost-efficiency of the Portuguese electricity distribution companies from 2002 to 2006. A dynamic analysis using Malmquist Indices is also conducted in order to evaluate the changes in productivity over this period. Our analysis shows that the application of DEA for formative purposes meets some difficulties. In particular it shows that whilst the modelling of productivity/efficiency scores using DEA is relatively straightforward, it is comparatively more difficult to develop models that are economically valid and that produce results with face validity. Based on the insights derived from this analysis the paper provides some recommendations regarding the successful application of DEA for performance improvement.

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Efficiency and Ownership in Swedish Electricity Retail Distribution

Cited by 47 publications

References 16 publications

Are all Scales Optimal in DEA? Theory and Empirical Evidence

Are all Scales Optimal in DEA? Theory and Empirical Evidence

Productivity in Electricity Retail after Market Liberalisation: Analysing the Effects of Ownership and Firm's Governance Structure

Formative evaluation of electricity distribution utilities using data envelopment analysis

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