Estimating Sector-Specific Data of the Electric Power Industry to Analyze the Effect of the Liberalization: The Case of Japan

Abstract

Input-output tables are employed to analyze the liberalization of electricity industries around the world. However, the input-output tables do not have sectoral data of the electricity industry in many countries. Electricity industries that consist of an electricity generation, transmission, and retail (and/or distribution) sector have experienced the different degrees of liberalization; the generation and retail sector have experienced liberalization in many countries or regions, while the transmission sector has not faced liberalization. In this study, we estimate the sectoral data of the electricity industry in an input-output table by using annual reports of the electric power companies and also defined the relationship among the sectors. Finally, we find that the data which are analyzed by previous methods can distort policy decisions and that especially the definition of the sectors' intersection in the industry is critical.Category & Number: 5. Industrial Organization and Structural PolicyJEL Classification: C32, C33, Q41, Q48