Incentivized Mergers and Cost Efficiency: Evidence from the Electricity Distribution Industry

2020 ◽  
Author(s):  
Robert Clark ◽  
Mario Samano
Keyword(s):  
Cost Efficiency ◽  
Electricity Distribution

scholarly journals The Cost Efficiency of the Brazilian Electricity Distribution Utilities: A Comparison of Bayesian SFA and DEA Models

2010 ◽  
Vol 2010 ◽  
pp. 1-20 ◽  
Author(s):  
Marcus Vinicius Pereira de Souza ◽  
Madiagne Diallo ◽  
Reinaldo Castro Souza ◽  
Tara Keshar Nanda Baidya
Keyword(s):  
Cost Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Fundamental Aspect ◽  
Data Envelopment ◽  
Electricity Distribution ◽  
Frontier Analysis ◽  
Dea Models ◽  
The Cost ◽  
Analysis Models

The purpose of this study is to evaluate the efficiency indices for 60 Brazilian electricity distribution utilities. These scores are obtained by DEA (Data Envelopment Analysis) and Bayesian Stochastic Frontier Analysis models, two techniques that can reduce the information asymmetry and improve the regulator's skill to compare the performance of the utilities, a fundamental aspect in incentive regulation schemes. In addition, this paper also addresses the problem of identifying outliers and influential observations in deterministic nonparametric DEA models.

scholarly journals ESTIMATION OF STOCHASTIC FRONTIER COST EFFICIENCY FOR COMPANIES IN THE ELECTRICITY DISTRIBUTION SECTOR IN BRAZIL

2014 ◽  
Author(s):  
Simone Caberte Naimer ◽  
João Serafim Tusi da Silveira ◽  
Lucas Veiga Ávila ◽  
Julio Cezar Mairesse Siluk
Keyword(s):  
Cost Efficiency ◽  
Stochastic Frontier ◽  
Electricity Distribution ◽  
Distribution Sector

Does regulation induce cost efficiency in electricity distribution utilities? Use of stochastic cost frontier analysis for the Indian states

2021 ◽  
pp. 178359172110294
Author(s):  
Amit Nandan ◽  
Hrushikesh Mallick
Keyword(s):  
Public Sector ◽  
Cost Efficiency ◽  
The State ◽  
Electricity Distribution ◽  
State Governments ◽  
Power Sector ◽  
Indian States ◽  
Stochastic Cost Frontier ◽  
Cost Frontier ◽  
The Cost

To overcome the macroeconomic crisis of the early 1990s, the Government of India persuaded the state governments to adopt market-oriented reforms for loss-making state public sector undertakings in general and power sector utilities in particular with an aim to limit the overall size of the public sector. This led the state governments to undertake unbundling of their vertically integrated State Electricity Boards (SEBs), establish independent regulatory bodies in the form of State Electricity Regulatory Commissions (SERCs) to regulate the power sector, and allow for an active participation of private sector. Given this backdrop, the present study attempts to examine the effect of establishment of SERCs on the cost-efficiency of electricity distribution in the Indian states. Thereby, it evaluates whether the establishment of SERCs has induced efficiency gains in the electricity distribution. Estimating a Cobb-Douglas stochastic cost frontier function, it finds that the establishment of independent regulators in various states has resulted in significant improvements in the cost-efficiency in the electricity distribution.

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