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An updated assessment of technical efficiency and returns to scale for U.S. electric power plants

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  • Bernstein, David H.

Abstract

This paper utilizes cutting-edge panel stochastic frontier electricity production models to measure the impact of state and federal regulations on United States (U.S.) natural gas fired power plants from 1994 to 2016. Using an expansive dataset, I simultaneously account for plant specific heterogeneity as well as time varying and persistent inefficiency. Previous studies of electricity generation in the U.S. have ignored at least one of these components. The ability to control for unobserved heterogeneity is important in assessing long-term managerial effectiveness.

Suggested Citation

  • Bernstein, David H., 2020. "An updated assessment of technical efficiency and returns to scale for U.S. electric power plants," Energy Policy, Elsevier, vol. 147(C).
  • Handle: RePEc:eee:enepol:v:147:y:2020:i:c:s0301421520306108
    DOI: 10.1016/j.enpol.2020.111896
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    More about this item

    Keywords

    Stochastic frontier analysis; Returns to scale; Technical efficiency; Electricity generation; Panel data;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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