Incentive Regulation and the Role of Convexity in Benchmarking Electricity Distribution: Economists versus Engineers

Emili Grifell-Tatje and Kristiaan Kerstens

No 2007-ECO-01, Working Papers from IESEG School of Management

Abstract: This note illustrates the potential impact of the specification of a convex production technology on establishing minimal costs compared to the use of a non-convex technology when benchmarking electricity distributors. This methodological reflection is mainly motivated by recent engineering literature providing evidence for non-convexities in electricity distribution. An empirical illustration using non-parametric specifications of technology illustrates this main point using a sample of Spanish electricity distribution firms earlier analysed in Grifell-Tatjé and Lovell (2003).

Keywords: Convexity; incentive regulation; benchmarking; engineering (search for similar items in EconPapers)
JEL-codes: L43 L94 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2007-10
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Annals of Public and Cooperative Economics, June 2008, 79(2), pp. 227-248

Downloads: (external link)
http://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich= ... Grifell_Kerstens.pdf First version, 2007 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 FORBIDDEN (http://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich=910908507_2007-ECO-1-Grifell_Kerstens.pdf [301 Moved Permanently]--> https://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich=910908507_2007-ECO-1-Grifell_Kerstens.pdf [301 Moved Permanently]--> https://iesegnet.sharepoint.com/sites/Intranet-Home/bienvenue/DownloadDoc.asp?Fich=910908507_2007-ECO-1-Grifell_Kerstens.pdf)

Related works:
Journal Article: INCENTIVE REGULATION AND THE ROLE OF CONVEXITY IN BENCHMARKING ELECTRICITY DISTRIBUTION: ECONOMISTS VERSUS ENGINEERS (2008)
Working Paper: Incentive Regulation and the Role of Convexity in Benchmarking Electricity Distribution: Economists versus Engineers (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ies:wpaper:e200701

Access Statistics for this paper

More papers in Working Papers from IESEG School of Management Contact information at EDIRC.
Bibliographic data for series maintained by Lies BOUTEN ().