Electricity rates and the funding of municipal broadband networks: An empirical analysis

George Ford

Energy Economics, 2021, vol. 102, issue C

Abstract: Most Government-Owned Broadband Networks (“GONs”) are funded by city finances in some way, in some cases by shifting costs to a municipally-operated electric utility. This shift of broadband costs to the electric utility is expected to increase electricity rates, while other funding arrangements are not expected to affect electricity rates of the municipal utilities. In this article, a statistical analysis is conducted on the municipal electric utility rates of four Tennessee cities that constructed GONs in or around 2008. Using electric utility data from the Energy Information Administration, the analysis starkly reveals sizable electric utility rates increases for residential and commercial customers when the utility-funded model is used, but not for alternative funding arrangements.

Keywords: Broadband; Municipal broadband; Government owned networks; Difference in Differences; Randomized inference; Electricity rates (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:102:y:2021:i:c:s0140988321003613

DOI: 10.1016/j.eneco.2021.105475

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