Scale, Governance and Net Zero: Decentralisation vs Centralisation in Electricity

Michael G. Pollitt

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: This paper explores the concept of scale within the future electricity sector. First, we discuss the theory and evidence behind economies of scale and scope and how they might apply to firm sizes within the electricity supply sector. Next, we consider how the governance of the electricity sector might influence firm scale. Finally, we explore how the nature of what is required to get to net zero might shape firm scales. Overall, we suggest that decentralisation trends within the electricity sector do not clearly imply that large firms will become less significant in a net zero electricity sector.

Keywords: Scale; Scope; Governance; Net Zero; Decentralisation (search for similar items in EconPapers)
JEL-codes: L94 (search for similar items in EconPapers)
Date: 2025-03-15
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:2513

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