Scandinavian Working Papers in Economics

CERE Working Papers,
CERE - the Center for Environmental and Resource Economics

No 2020:4: Wind of change: Small-scale electricity production and distribution grid efficiency in Sweden

Mattias Vesterberg (), Wenchao Zhou () and Tommy Lundgren ()
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Mattias Vesterberg: CERE - the Center for Environmental and Resource Economics
Wenchao Zhou: CERE - the Center for Environmental and Resource Economics
Tommy Lundgren: CERE - the Center for Environmental and Resource Economics

Abstract: In this paper, we measure the technical efficiency for local electricity distribution firms in Sweden, and in particular how small- and micro-scale generation affects efficiency scores. Using two-stage data envelope analysis to model the technical efficiency and a double bootstrap approach to estimate the determinants of inefficiencies, we show that firms are heterogenous in terms of inefficiency, but that a large share of small- and micro-scale generation is not associated with more inefficient operations.

Keywords: Data Envelope Analysis; Bootstrap; Efficiency

JEL-codes: C14; D42; Q41

20 pages, April 15, 2020

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