A data envelopment analysis of gas utilities' efficiency

Daniel Hollas, Kenneth Macleod and Stanley Stansell ()

Journal of Economics and Finance, 2002, vol. 26, issue 2, 123-137

Abstract: This study examines the Natural Gas Policy Act of 1978 and Federal Energy Regulatory Commission (FERC) policies that culminated in Order 636 in 1992. The regulatory environment in which natural gas distribution utilities operate was altered. FERC policies forced local gas distribution utilities into an increasingly competitive environment. Restructuring of the industry may affect economic efficiency. Data Envelopment Analysis is used to examine the economic efficiency of gas distributors during 1975–94. Federal policy appears to lead to a reduction in scale due to restructuring and more competition. Reduced scale economies have not altered the economic efficiency of the utilities. Copyright Springer 2002

Date: 2002
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DOI: 10.1007/BF02755980

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