Not logged in.
Quick Search - Contribution
|Title||The Estimation of an Average Cost Frontier to Calculate Benchmark Tariffs for Electricity Distribution|
|Institution||University of Zurich|
|Series Name||Working paper series / Socioeconomic Institute|
|Abstract Text||In this paper we have examined the scale and cost inefficiency of a sample of Swiss electricity distribution utilities. To do so, we have considered estimation of a stochastic frontier average cost model using the approach suggested by Schmidt and Sickles (1984) for panel data. A translog cost function was estimated using panel data for a sample of 30 municipal utilities over the period 1992-1996. The results indicate the existence of economies of output and customer density and economies of scale. Moreover, the findings on cost inefficiency show that a majority of the distribution utilities is not producing at the minimum level of the cost and that a possible application of the frontier methodology employed in this paper relates to the regulation and benchmarking of the delivery rates.|
|PDF File||Download from ZORA|
EP3 XML (ZORA)