Efficiency and performance in gas distribution. Evidence from Brazil

Beatriz Tovar, Francisco Ramos-Real and Fagundes de Almeida

Applied Economics, 2015, vol. 47, issue 50, 5390-5406

Abstract: This article analyses the current state of the gas distribution industry in Brazil, by identifying the main factors that determine its efficiency. In order to test the performance of the industry, we have calculated the firms' technical efficiency during the period 2001-2009. We analyse whether some economic and technological factors as consumer density, load factor or regulation, among others, have affected the performance of this industry. We show that companies serving markets with different customer characteristics (diversification) have reached higher levels of efficiency and evolved faster. Moreover, the private ownership and price cap regulation are more efficient in relation to public ownership and cost of service regulation. These findings are important to support the improvement of the regulation of gas distribution in the Brazilian states.

Date: 2015
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DOI: 10.1080/00036846.2015.1047093

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