Determinants of Research and Development Activity by Electric Utilities

Wilder, Ronald P.; Stansell, Stanley R.

doi:10.2307/3003126

Cited by 13 publications

(16 citation statements)

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“…On the other hand, it is argued that small firms have the advantages in conducting R&D investment since they have greater flexility and less complex management structure in implementing new projects (Acs & Audretsch, 1988;Bhattacharya & Bloch, 2004). The significant positive coefficient on ln(PlantInService) supports the deep pocket theory of R&D. Similar results were reported by Wilder & Stansell (1974) and .…”

Section: Roesupporting

confidence: 78%

“…It is reasonable to believe that a utility with stronger profitability tends to invest more in R&D. Wilder & Stansell (1974) examined the effect of rate of return on common equity on R&D outlays, and found that the estimated coefficient for rate of return is positive and significantly greater than zero in two of the three years. The authors defined the rate of return on common equity as the ratio of earnings available for common stock to the average of the beginning and year-end balances in proprietary capital less preferred stock.…”

Section: Roementioning

confidence: 99%

“…Wilder & Stansell (1974) represents one the early studies examining the determinants of R&D outlays. In this study, the authors developed a model of the determinants of R&D outlays for privately owned electric utilities and tested the model empirically with data for the years 1968 through 1970.…”

Section: Studies In the Electricity Industrymentioning

confidence: 99%

“…In the existing studies, different proxies have been employed to denote firm size. Wilder & Stansell (1974) and used logarithmic yearly operating revenue of each company as proxy for firm size. In the study of Stiebalea & Reize (2011), firm size is measured as the logarithm of number of employees.…”

Section: Model Specificationmentioning

confidence: 99%

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impact of regulatory changes and mergers on electricity prices, electricity workers' wages, and research and development

Tian¹

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The dissertation is composed of three chapters that focus on electricity industry in the U.S.The first chapter examines the impact of Incentive Regulation (IR) or Performance-Based Regulation (PBR) of electric distribution utilities on price differentials between customer classes. Consumers in the electricity industry and many other public utility industries alike are often divided into different groups, to which different tariffs are applied. Regulatory constraint could affect utilities' pricing incentives. Therefore, this chapter aims to empirically examine whether and how price differentials between customer classes have changed as a result of the adoption of PBR.This empirical study explores a balanced panel dataset comprised of 87 distribution utilities dur- The results of this chapter provide additional empirical reference on the impact of PBR.The second chapter studies the impact of deregulation on labor earnings in the electricity industry in the United States. General agreement exists that deregulation in product market affects not only the product market itself but also the labor market, as stepped-up competition in the product market can easily place greater pressures on labor expenses. While extensive studies have been conducted to examine the impacts of deregulation on rates, efficiency, investment, etc., the impacts on labor market are relatively less known. Therefore, my goal in this study is to provide some empirical reference on the impact of product market deregulation on hourly wages in the background of electricity industry in the United States. The empirical analysis is based on earnings data from

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Section: Roesupporting

confidence: 78%

Section: Roementioning

confidence: 99%

Section: Studies In the Electricity Industrymentioning

confidence: 99%

Section: Model Specificationmentioning

confidence: 99%

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impact of regulatory changes and mergers on electricity prices, electricity workers' wages, and research and development

Tian¹

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“…However, mergers between utilities could work in the opposite direction, leading to bigger entities in the long-run. Empirical evidence confirms that R&D spending of utilities increases with firm size (Delaney andHoneycutt 1976, Wilder andStansell 1974).…”

Section: B) Vertical Integration Vs Unbundlingmentioning

confidence: 85%

The Impact of the Regulatory Reform Process on the R&D Investment of European Electricity Utilities

Schmitt¹,

Kucsera²

2014

Review of Network Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may ABSTRACT:The aim of this paper is to give deeper insights into the impact of regulatory reforms and privatization on R&D spending of electricity utilities. Building on a panel data set including the biggest European utilities from eight EU-countries over a period from 1985 until 2010, we find a strong negative influence of privatization and also a negative overall impact of regulation on R&D investment. Nearing competition has a dampening effect on R&D spending, but once the market and regulatory framework conditions have been established, higher levels of competition positively influence R&D. Our results further indicate that the relation between competition and innovative investment can be described as inverted U-shaped. Finally, we could not find any evidence that (ownership) unbundling and incentive regulation affect R&D expenditures of the utilities.

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Liberalizations, Privatizations, and Institutional Market Design

Nicita

Belloc

2016

Liberalizations in Network Industries

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Determinants of Research and Development Activity by Electric Utilities

Cited by 13 publications

References 1 publication

impact of regulatory changes and mergers on electricity prices, electricity workers' wages, and research and development

impact of regulatory changes and mergers on electricity prices, electricity workers' wages, and research and development

The Impact of the Regulatory Reform Process on the R&D Investment of European Electricity Utilities

Liberalizations, Privatizations, and Institutional Market Design

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