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Post-regulatory reform productivity gains in Japan's electricity industry

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  • Takanori Ida
  • Eiichi Ito
  • Shin Kinoshita

Abstract

Following two periods of regulatory reforms in 1996 and in 2000, there has been rapid progress in restructuring Japan's electricity industry. The purpose of this study is to analyse the effect of the regulatory reforms on the technical efficiencies of electric power companies. Our findings show that first-period reforms implemented in 1996-1999 were able to decrease costs by 7.5%, while second-period reforms, during the period of 2000 to 2002, effectively cut costs by 11.8% with respect to the base costs before regulatory reforms.

Suggested Citation

  • Takanori Ida & Eiichi Ito & Shin Kinoshita, 2007. "Post-regulatory reform productivity gains in Japan's electricity industry," Applied Economics Letters, Taylor & Francis Journals, vol. 14(13), pages 975-979.
    • Handle: RePEc:taf:apeclt:v:14:y:2007:i:13:p:975-979
    DOI: 10.1080/13504850600706008
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    Cited by:

    1. Nakano, Makiko & Managi, Shunsuke, 2008. "Regulatory reforms and productivity: An empirical analysis of the Japanese electricity industry," Energy Policy, Elsevier, vol. 36(1), pages 201-209, January.
    2. Li, Hong-Zhou & Kopsakangas-Savolainen, Maria & Xiao, Xing-Zhi & Lau, Sim-Yee, 2017. "Have regulatory reforms improved the efficiency levels of the Japanese electricity distribution sector? A cost metafrontier-based analysis," Energy Policy, Elsevier, vol. 108(C), pages 606-616.
    3. Erdogdu, Erkan, 2011. "The impact of power market reforms on electricity price-cost margins and cross-subsidy levels: A cross country panel data analysis," Energy Policy, Elsevier, vol. 39(3), pages 1080-1092, March.
    4. Barros, Carlos Pestana & Managi, Shunsuke, 2009. "Regulation, pollution and heterogeneity in Japanese steam power generation companies," Energy Policy, Elsevier, vol. 37(8), pages 3109-3114, August.
    5. Erdogdu, Erkan, 2013. "Essays on Electricity Market Reforms: A Cross-Country Applied Approach," MPRA Paper 47139, University Library of Munich, Germany.

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