1997
DOI: 10.2307/3147168
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Cost Efficiency in Power Procurement and Delivery Service in the Electric Utility Industry

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Cited by 33 publications
(21 citation statements)
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“…As in many other commodity markets, strong scale economies due to large sunk costs coexist with decreasing transmission and distribution costs (Christensen and Greene, 1976;Thompson 1997). In addition, the perceived homogeneity of electricity hinders the development of distinct preferences among audience members.…”
Section: The Empirical Settingmentioning
confidence: 99%
“…As in many other commodity markets, strong scale economies due to large sunk costs coexist with decreasing transmission and distribution costs (Christensen and Greene, 1976;Thompson 1997). In addition, the perceived homogeneity of electricity hinders the development of distinct preferences among audience members.…”
Section: The Empirical Settingmentioning
confidence: 99%
“…We consider the following outputs: low-voltage sales (residential and commercial), high-voltage sales (industrial), and sales for resale to other utilities. A firm's cost of supplying power to final consumers is affected by the type of customer it serves (Roberts, 1986;Thompson, 1997). High voltage sales incur less transmission costs than low voltage sales due to reduced operating and maintenance costs.…”
Section: Appendix a The Data Envelopment Analysis Techniquementioning
confidence: 99%
“…As discussed in Robert (1986), Salvanes and Tjφota (1994) and Thompson (1997), the cost function should take into account differences in network characteristics, load factor and other factors that are unrelated to cost-efficiency but affect the costs. The specification used here draws basically from the model used by Filippini (1998).…”
Section: Specification Of the Frontier Cost Functionmentioning
confidence: 99%