Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

No 35/2001: International Benchmarking of Electricity Distribution Utilities

Finn R Førsund () and Dag F. Edvardsen
Additional contact information
Finn R Førsund: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Dag F. Edvardsen: The Norwegian Building Research Institute, Postal: SINTEF, Forskningsveien 1 , Pb. 124 Blindern,, NO-0314 Oslo

Abstract: Benchmarking by means of applying the DEA model is appearing as an interesting alternative for regulators under the new regimes for electricity distributors. A sample of large electricity distribution utilities from Denmark, Finland, Norway, Sweden and the Netherlands for the year 1997 is studied by assuming a common production frontier for all countries. The peers supporting the benchmark frontier are from all countries. New indexes describing cross country connections between peers and their inefficient units are developed, as well as productivity measurements between units from different countries.

Keywords: Electricity utility; benchmarking; efficiency; DEA; Malmquist productivity index

JEL-codes: C43; C61; D24; L94

48 pages, December 12, 2001

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Published as
Finn R Førsund and Dag F. Edvardsen, (2003), 'International Benchmarking of Electricity Distribution Utilities', Resource and Energy Economics, vol 25, pages 353-371

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