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Is Productivity Growth in Electricity Distribution Negative? An Empirical Analysis Using Ontario Data

Dimitri Dimitropoulos and Adonis Yatchew
Authors registered in the RePEc Author Service: Adonis Yatchew ()

The Energy Journal, 2017, vol. Volume 38, issue Number 2

Abstract: Electricity industries are experiencing upward cost pressures in many parts of the world. This paper focuses on productivity trends in electricity distribution. We apply two methodologies for estimating productivity growth - an index based approach, and an econometric cost based approach - to data on 73 Ontario distributors for the period 2002 to 2012. The resulting productivity growth estimates are approximately -1% per year, suggesting a reversal of the positive estimates that have generally been reported in previous periods. We implement flexible semi-parametric specifications to assess the robustness of these conclusions and discuss the use of such statistical analyses for calibrating productivity and relative efficiency within a price-cap framework.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2017
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