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Efficiency and Regulation of the Slovenian Electricity Distribution Companies

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  • Massimo Filippini

    ()
    (Center for Energy Policy and Economics CEPE, Department of Management, Technology and Economics, ETH Zurich, Switzerland)

  • Nevenka Hrovatin

    (University of Ljubljana Faculty of Economics Kardeljeva plošcad 17, 1000 Ljubljana, Slovenia)

  • Jelena Zoric

Abstract

Energy demand, and in particular electricity demand in India has been growing at a very rapid rate over the last decade. Given, current trends in population growth, industrialisation, urbanisation, modernisation and income growth, electricity consumption is expected to increase substantially in the coming decades as well. Tariff reforms could play a potentially important role as a demand side management tool in India. However, the effects of any price revisions on consumption will depend on the price elasticity of demand for electricity. In the past, electricity demand studies for India published in international journals have been based on aggregate macro data at the country or sub-national/ state level. In this paper, price and income elasticities of electricity demand in the residential sector of all urban areas of India are estimated for the first time using disaggregate level survey data for over thirty thousand households. Three electricity demand functions have been estimated using monthly data for the following seasons: winter, monsoon and summer. The results show electricity demand is income and price inelastic in all three seasons, and that household, demographic and geographical variables are important in determining electricity demand, something that is not possible to determine using aggregate macro models alone.

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Bibliographic Info

Paper provided by CEPE Center for Energy Policy and Economics, ETH Zurich in its series CEPE Working paper series with number 02-14.

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Length: 15 pages
Date of creation: Apr 2002
Date of revision:
Handle: RePEc:cee:wpcepe:02-14

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  1. Filippini, Massimo & Wild, Jorg, 2001. "Regional differences in electricity distribution costs and their consequences for yardstick regulation of access prices," Energy Economics, Elsevier, vol. 23(4), pages 477-488, July.
  2. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
  3. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(02), August.
  4. Jamasb, T. & Pollitt, M., 2000. "Benchmarking and regulation: international electricity experience," Utilities Policy, Elsevier, vol. 9(3), pages 107-130, September.
  5. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
  6. Nevenka Hrovatin, 2001. "Restructuring the Slovenian ElectricityIndustry: The Benefits and Costs of Introducing the Electricity Market," Eastern European Economics, M.E. Sharpe, Inc., vol. 39(5), pages 6-30, September.
  7. Walker, Cody D. & Lough, W. Timothy, 1997. "A critical review of deregulated foreign electric utility markets," Energy Policy, Elsevier, vol. 25(10), pages 877-886, August.
  8. Rossi, Martin A., 2001. "Technical change and efficiency measures: the post-privatisation in the gas distribution sector in Argentina," Energy Economics, Elsevier, vol. 23(3), pages 295-304, May.
  9. Simar, L., 1991. "Estimating efficiencies from frontier models with panel data: a comparison of parametric, non-parametric and semi-parametric methods with boot strapping," CORE Discussion Papers 1991026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Foreman-Peck, James & Waterson, Michael, 1985. "The Comparative Efficiency of Public and Private Enterprise in Britain: Electricity Generation between the World Wars," Economic Journal, Royal Economic Society, vol. 95(380a), pages 83-95, Supplemen.
  11. Massimo Filippini & Paola Prioni, 1994. "Is Scale and Cost Inefficiency in the Swiss Bus Industry a Regulatory Problem? Evidence from a Frontier Cost Approach," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(2), pages 219-232.
  12. Mark J. Roberts, 1986. "Economies of Density and Size in the Production and Delivery of Electric Power," Land Economics, University of Wisconsin Press, vol. 62(4), pages 378-387.
  13. Massimo Filippini, 1998. "Are Municipal Electricity Distribution Utilities Natural Monopolies?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 69(2), pages 157-174, 06.
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