G2TT
来源类型Working papers
规范类型论文
DOI10.3929/ethz-a-007600324
Unobserved heterogeneous effects in the cost efficiency analysis of electricity distribution systems
Agrell, Per J.; Farsi, Mehdi; Filippini, Massimo; Koller, Martin
发表日期2013-01
出版者ETH Zurich, Center of Economic Research (CER-ETH)
出版年2013
语种英语
摘要The purpose of this study is to analyze the cost efficiency of electricity distribution systems in order to enable regulatory authorities to establish price- or revenue cap regulation regimes. The increasing use of efficiency analysis in the last decades has raised serious concerns among regulators and companies regarding the reliability of efficiency estimates. One important dimension affecting the reliability is the presence of unobserved factors. Since these factors are treated differently in various models, the resulting estimates can vary across methods. Therefore, we decompose the benchmarking process into two steps. In the first step, we identify classes of similar companies with comparable network and structural characteristics using a latent class cost model. We obtain cost best practice within each class in the second step, based on deterministic and stochastic cost frontier models. The results of this analysis show that the decomposition of the benchmarking process into two steps has reduced unobserved heterogeneity within classes and, hence, reduced the unexplained variance previously claimed as inefficiency.
主题Efficiency analysis ; Cost function ; Electricity sector ; Incentive regulation
URLhttps://www.research-collection.ethz.ch/handle/20.500.11850/74576
来源智库Centre for Energy Policy and Economics (Switzerland)
引用统计
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/266717
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GB/T 7714
Agrell, Per J.,Farsi, Mehdi,Filippini, Massimo,et al. Unobserved heterogeneous effects in the cost efficiency analysis of electricity distribution systems. 2013.
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