Discussion Papers, Department of Business and Management Science, Norwegian School of Economics (NHH)
Productivity Development for Norwegian Electricity Distribution Companies 2004-2013
(), Endre Bjørndal
(), Gudbrand Lien
() and Mette Bjørndal
Abstract: Norwegian distribution companies have been subjected to an
incentive regulation scheme from 1997, and the efficiency incentives were
further strengthened with the introduction of yardstick regulation in 2007.
We examine the productivity development for these companies in the period
from 2004 to 2013. Using three benchmarking methods, DEA, SFA, and StoNED,
we examine productivity change, with the usual decompositions into
efficiency change, technical change, and scale efficiency change.
Increasing investments and use of accounting-based capital costs in our
analysis may lead to a negative bias in the productivity change estimates,
and we therefore perform our analysis with and without capital costs. Our
results indicate a negative productivity development for the whole period
from 2004 to 2013, and we do not observe a positive effect of the change in
regulation regime from 2007.
Keywords: Productivity development; DEA; SFA; StoNED; (follow links to similar papers)
JEL-Codes: C00; C10; C14; Q00; (follow links to similar papers)
23 pages, October 7, 2015
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