An Analysis of Cost Structures in the Electricity Generation Industry
Additional contact information
Supawat Rungsuriyawiboon: CEPA - School of Economics, The University of Queensland, https://economics.uq.edu.au/cepa
No WP052004, CEPA Working Papers Series from University of Queensland, School of Economics
This paper provides up to date firm level analysis of the production technology and cost structures in the U.S. electric power generation industry. The paper applies an econometric approach into a dual restricted variable cost function within a “temporal equilibrium” framework. The Generalized Method of Moments (GMM) estimation is used to estimate the cost structures in the electric power generation industry. This paper is empirically implemented using a panel data (1986-1998) on 32 nuclear power generations for major investor owned utilities. The major result indicates that most of electric utilities in the nuclear electricity generation industry overutilized capital in production over time. Technological progress may have slowed over the sample period of this study. The results also show that electric utilities with small generation were operating at decreasing returns to scale whereas those with large generation were operating at increasing returns to scale in the production of the electricity industry in the sample data.
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:qld:uqcepa:10
Access Statistics for this paper
More papers in CEPA Working Papers Series from University of Queensland, School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by SOE IT ().