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An Econometric Model of Electricity Distribution Systems in Urban Areas

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  • J-M Guldmann

    (Department of City and Regional Planning, The Ohio State University, Columbus, OH 43210, USA)

Abstract

The purpose of this paper is to analyze the production structure of electricity distribution systems in urban areas. Under the assumption that electric utilities minimize their distribution capital and operating costs, input demand functions are developed for the various distribution facilities (for example, poles, wires, streetlights) and are econometrically estimated, using cross-sectional data on communities served by a major utility. These functions are then used to allocate total costs on the basis of marginal costs and to assess the extent of economies of scale and density in electricity distribution.

Suggested Citation

  • J-M Guldmann, 1984. "An Econometric Model of Electricity Distribution Systems in Urban Areas," Environment and Planning A, , vol. 16(6), pages 793-806, June.
    • Handle: RePEc:sae:envira:v:16:y:1984:i:6:p:793-806
    DOI: 10.1068/a160793
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    References listed on IDEAS

    as
    1. Baumol, William J, 1977. "On the Proper Cost Tests for Natural Monopoly in a Multiproduct Industry," American Economic Review, American Economic Association, vol. 67(5), pages 809-822, December.
    2. Meyer, Robert A, 1975. "Publicly Owned Versus Privately Owned Utilities: A Policy Choice," The Review of Economics and Statistics, MIT Press, vol. 57(4), pages 391-399, November.
    3. Leland Gerson Neuberg, 1977. "Two Issues in the Municipal Ownership of Electric Power Distribution," Bell Journal of Economics, The RAND Corporation, vol. 8(1), pages 303-323, Spring.
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