Multi-Output compensation system in electricity distribution: the case of Spain
The Marco Legal Estable provides us with a rare opportunity to study a system of multi-output reimbursements applied to the distribution of electricity in Spain over an extensive period of time: 1988–1997. To do so, an analysis structure is proposed based on a Bennet-type indicator (1920), which allows us to identify the variations in the revenues associated with the activity of electricity distribution, for each of the companies and each one of the outputs. The Law recognized, regulated and compensated four products differently. This indicator is broken down into a quantity effect and a reimbursement effect. The quantity effect evaluates the impact on revenues of the variations in demand for each of the outputs, and the reimbursement effect the modifications in revenues due to the changes in the remuneration per product, which are based on standard costs. Modern production theory is used to explain the quantity indicator by means of a productivity and activity effect. Lastly, the productivity indicator is broken down into operating efficiency, allocative efficiency and technical change. To do so, a sequential-type technology is defined whose information begins in 1952. Mathematical programming techniques are used to resolve the proposed economic decomposition.
Volume (Year): 185 (2008)
Issue (Month): 2 (July)
|Contact details of provider:|| Postal: Avda. Cardenal Herrera Oria, 378, 28035 Madrid|
Web page: http://www.ief.es
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kevin Fox & Robert Hill & W. Diewert, 2004. "Identifying Outliers in Multi-Output Models," Journal of Productivity Analysis, Springer, vol. 22(1), pages 73-94, July.
- Tulkens, H. & Vanden Eeckaut, P., "undated".
"Non-parametric efficiency, progress and regress measures for panel data: Methodological aspects,"
CORE Discussion Papers RP
1132, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Tulkens, Henry & Vanden Eeckaut, Philippe, 1995. "Non-parametric efficiency, progress and regress measures for panel data: Methodological aspects," European Journal of Operational Research, Elsevier, vol. 80(3), pages 474-499, February.
- TULKENS, Henry & VANDEN EECKAUT, Philippe, 1993. "Non-Parametric Efficiency, Progress and Regress Measures for Panel Data : Methodological Aspects," CORE Discussion Papers 1993016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Arocena, Pablo & Kuhn, Kai-Uwe- & Regibeau, Pierre, 1999. "Regulatory reform in the Spanish electricity industry: a missed opportunity for competition," Energy Policy, Elsevier, vol. 27(7), pages 387-399, July.
- Hjalmarsson, Lennart & Veiderpass, Ann, 1992. " Productivity in Swedish Electricity Retail Distribution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages 193-205, Supplemen.
When requesting a correction, please mention this item's handle: RePEc:hpe:journl:y:2008:v:185:i:2:p:115-148. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ana Belén Miquel Burgos)
If references are entirely missing, you can add them using this form.