In: Zbornik Radova Ekonomski Fakultet u Rijeka, 2010, vol. 28, no. 1, p. 89-112
This paper aims to analyse the price regulation method and performance of the water industry in Slovenia. A stochastic cost frontier model is employed to estimate and decompose the total factor productivity (TFP) growth of water distribution utilities in the 1997-2003 period. The main goal is to find out whether the lack of proper incentives to improve performance has resulted in the low TFP...
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In: Journal of productivity analysis, 2008, vol. 29, no. 2, p. 169-182
This study estimates cost inefficiency and economies of scale of Slovenian water distribution utilities over the 1997-2003 period by employing several different stochastic frontier methods. The results indicate that significant cost inefficiencies are present in the utilities. An introduction of incentive-based price regulation scheme might help resolve this problem. However, the inefficiency...
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In: Energy Policy, 2004, vol. 32, no. 3, p. 335-344
The Slovenian Energy Law, adopted in 1999, has opened the internal market to competition up to 64% of the final consumption. The opening of the internal market to foreign competition is envisaged for 2003. With regard to the methodology of price regulation, the Energy Law introduces the “price-cap” regulation, which aims to give firms incentive for cost reduction. To provide information for...
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