International Benchmarking and Yardstick Regulation: An Application to European Electricity Utilities

Tooraj Jamasb and Michael Pollitt

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

Abstract: Due to a shortage of data and increased international mergers, national energy regulators are looking to international benchmarking analyses for help in setting price controls within incentive regulation. We present an international benchmarking study of 63 regional electricity distribution utilities in 6 European countries that aims to illustrate the methodological and data issues encountered in the use of international benchmarking for utility regulation. The study examines the effect of the choice of benchmarking methods using DAE, COLS and SFA models. We discuss what problems of international benchmarking are highlighted by the study and how they can be overcome.

Keywords: benchmarking; incentive regulation; data envelopment analysis; corrected ordinary least squares; stochastic frontier analysis (search for similar items in EconPapers)
JEL-codes: L94 (search for similar items in EconPapers)
Pages: 26
Date: 2001-11
New Economics Papers: this item is included in nep-eec, nep-ene, nep-ent and nep-net
Note: This version was updated June 2002. IO
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:0115

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