In this paper we estimate an average-cost function for a panel of 45 Swiss electricity distribution utilities as a basis for yardstick regulation of the distribution-network access prices. Unlike the existing literature, we separate the electricity sales function of utilities from the network operation function. Several exogenous variables measuring the heterogeneity of the service areas were...
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In: Energy Economics, 2008, vol. 30, no. 2, p. 503-516
This paper uses a choice experiment to evaluate the consumers' willingness to pay for energy-saving measures in Switzerland's residential buildings. These measures include air renewal (ventilation) systems and insulation of windows and facades. Two groups of respondents consisting respectively of 163 apartment tenants and 142 house owners were asked to choose between their housing status quo...
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In: Energy economics, 2012, vol. 34, no. 5, p. 1484–1491
This paper estimates a US frontier residential aggregate energy demand function using panel data for 48 ‘states’ over the period 1995 to 2007 using stochastic frontier analysis (SFA). Utilizing an econometric energy demand model, the (in)efficiency of each state is modelled and it is argued that this represents a measure of the inefficient use of residential energy in each state (i.e....
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The deregulation of the electricity industry is currently on the political agenda in many countries. In most countries, the deregulation of the sector is combined with a (re-) regulation of the electricity networks in most of the countries. In many countries incentive-based regulation – e.g. price-cap regulation, yardstick regulation – was introduced to promote efficiency improvements in...
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In: Applied economics, 2012, vol. 44, no. 3, p. 387-397
Traffic noise, air pollution and electromagnetic pollution (i.e. non-ionizing radiation, also called electrosmog) are typical negative local externalities in urban areas. They are side-effects of human and economic activity (e.g. road transport, telecommunication) and they affect individuals’ well-being negatively without compensation. In recent years, the increased number of mobile phone...
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The purpose of this study is to estimate a multivariate variable cost function in order to analyze the cost structure of a sample of Italian water distribution companies. The empirical results of this study could be used by the Italian Regulation Authority of this sector for two purposes: first, to improve the actual tariff regulation process, based on a benchmarking of variable costs, and...
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This paper studies a number of stochastic cost frontier models comparing their ability to distinguish unobserved heterogeneity from inefficiency variation among firms. The main focus is on the panel data models that incorporate firm-specific effects in a stochastic frontier framework, as proposed by Greene (2002, 2004). In cases where the unobserved heterogeneity is correlated with some of the...
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We analyze the technical efficiency of German and Swiss urban public transport companies by means of SFA. In transport networks we might face different network structures or complexities, not observed, but influencing the production process. The unobserved factors are typically modeled as separable factors. However, we argue that the entire production process is organized around different network...
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In: Journal of transport economics and policy, 2012, vol. 46, no. 1, p. 51-66
Efficiency measurement in public transport requires an adequate account of unobserved network characteristics that are typically modelled as factors separable from the production process. This paper proposes a panel data model that allows for non-separable firm-specific heterogeneity in an input distance function. The proposed model is applied to a sample of German and Swiss urban transit...
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In: Economic Modelling, 2015, vol. 51, p. 289-298
Population aging is challenging governments to find new solutions to finance the increasing demand for nursing home care and slow down the increase in expenditures. In this light, many European countries are currently considering reforms to increase efficiency in the provision of nursing home services. One popular restructuring policy is the transformation of public organizations into private...
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