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Università della Svizzera italiana

Cost efficiency in the Swiss gas distribution sector

Farsi, Mehdi ; Filippini, Massimo ; Kuenzle, Michael

In: Energy Economics, 2007, vol. 29, no. 1, p. 64-78

This paper studies the cost structure of gas distribution utilities in Switzerland. Three stochastic frontier models are applied to a panel of 26 companies operating from 1996 to 2000. Efficiency is assumed to be constant over time. The analysis highlights the importance of output characteristics such as customer density and network size. The results suggest that the utilities could slightly...