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Productivity development of Norwegian electricity distribution utilities

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  • Førsund, Finn R.
  • Kittelsen, Sverre A. C.

Abstract

When regulating electricity distribution utilities, estimates of the past productivity improvement performance are very important for future requirements. A piecewise linear frontier technology, reflecting observed best practice, accommodating the multi-output nature of distribution utilities is specified. A Malmquist index and its components, shift in frontier technology and change in efficiency, have been calculated for the period 1983 to 1989. The main results are a positive productivity growth averaging nearly 2% per year, and that this is mainly due to frontier technology shift. Outliers are scrutinised, but do not influence results for non-outliers.

Suggested Citation

  • Førsund, Finn R. & Kittelsen, Sverre A. C., 1998. "Productivity development of Norwegian electricity distribution utilities," Resource and Energy Economics, Elsevier, vol. 20(3), pages 207-224, September.
    • Handle: RePEc:eee:resene:v:20:y:1998:i:3:p:207-224
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