Productivity and Efficiency of US Gas Transmission Companies: A European Regulatory Perspective
On both sides of the Atlantic the regulation of gas transmission networks has undergone major changes since the early 1990’s. Whereas in the US the long-standing regime of cost-plus regulation was complemented by increasing pipe-to-pipe competition, most European countries moved towards incentive regulation complemented by market integration. We study the impact of US regulatory reform using a Malmquist-based productivity analysis for a panel of US interstate companies. Results are presented for changes in productivity, as well as for several convergence tests. The results indicate that taking productivity and convergence as performance indicators, regulation has been rather successful, in particular during a period where overall demand was flat. Lessons for European regulators are twofold. First, the US analysis shows that benchmarking of European transmission operators would be possible if data were available. Second, our results suggest that, in the long-run, market integration and competition are alternatives to the current European model.
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.:
- Rolf Färe & Shawna Grosskopf & Dimitri Margaritis, 2006. "Productivity Growth and Convergence in the European Union," Journal of Productivity Analysis, Springer, vol. 25(1), pages 111-141, 04.
- Alfred E. Kahn, 1988. "The Economics of Regulation: Principles and Institutions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610523, June.
- Léopold Simar & Paul W. Wilson, 1998.
"Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models,"
INFORMS, vol. 44(1), pages 49-61, January.
- SIMAR, LÃ©opold & WILSON, Paul, 1995. "Sensitivity Analysis to Efficiency Scores : How to Bootstrap in Nonparametric Frontier Models," CORE Discussion Papers 1995043, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Simar, L. & Wilson, P.W., . "Sensitivity analysis of efficiency scores: how to bootstrap in nonparametric frontier models," CORE Discussion Papers RP 1304, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jamasb, Tooraj & Pollitt, Michael, 2003. "International benchmarking and regulation: an application to European electricity distribution utilities," Energy Policy, Elsevier, vol. 31(15), pages 1609-1622, December.
- H. Son Nghiem & T. Coelli, 2002. "The Effect of Incentive Reforms Upon Productivity: Evidence from the Vietnamese Rice Industry," Journal of Development Studies, Taylor & Francis Journals, vol. 39(1), pages 74-93.
- Alam, Ila M Semenick & Sickles, Robin C, 2000. "Time Series Analysis of Deregulatory Dynamics and Technical Efficiency: The Case of the U.S. Airline Industry," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(1), pages 203-18, February.
- Aivazian, Varouj A, et al, 1987. "Economies of Scale versus Technological Change in the Natural Gas Transmission Industry," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 556-61, August.
- Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
- Callen, Jeffrey L, 1978. "Production, Efficiency, and Welfare in the Natural Gas Transmission Industry," American Economic Review, American Economic Association, vol. 68(3), pages 311-23, June.
- Maniadakis, Nikolaos & Thanassoulis, Emmanuel, 2004. "A cost Malmquist productivity index," European Journal of Operational Research, Elsevier, vol. 154(2), pages 396-409, April.
- Gerald Granderson, 2000. "Regulation, Open-Access Transportation, and Productive Efficiency," Review of Industrial Organization, Springer, vol. 16(3), pages 251-266, May.
- Simar, L. & Wilson, P.W., 1998.
"A General Methodology for Bootstrapping in Nonparametric Frontier Models,"
9811, Catholique de Louvain - Institut de statistique.
- Leopold Simar & Paul Wilson, 2000. "A general methodology for bootstrapping in non-parametric frontier models," Journal of Applied Statistics, Taylor & Francis Journals, vol. 27(6), pages 779-802.
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
- Mehdi Farsi & Massimo Filippini, 2004.
"Regulation and Measuring Cost-Efficiency with Panel Data Models: Application to Electricity Distribution Utilities,"
Review of Industrial Organization,
Springer, vol. 25(1), pages 1-19, 08.
- Mehdi Farsi & Massimo Filippini, 2003. "Regulation and Measuring Cost Efficiency with Panel Data Models: Application to Electricity Distribution Utilities," CEPE Working paper series 03-19, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Robin C. Sickles & Mary L. Streitwieser, 1998. "An analysis of technology, productivity, and regulatory distortion in the interstate natural gas transmission industry: 1977-1985," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(4), pages 377-395.
- Ray, Subhash C & Desli, Evangelia, 1997. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries: Comment," American Economic Review, American Economic Association, vol. 87(5), pages 1033-39, December.
- Button, Kenneth J & Weyman-Jones, Thomas G, 1992. "Ownership Structure, Institutional Organization and Measured X-Efficiency," American Economic Review, American Economic Association, vol. 82(2), pages 439-45, May.
- Mary L Streitwieser & Robin C Sickles, 1991.
"Technical Inefficiency And Productive Decline In The U.S. Interstate Natural Gas Pipeline Industry Under The Natural Gas Policy Act,"
91-6, Center for Economic Studies, U.S. Census Bureau.
- Sickles, Robin C. & Streitwieser, Mary L., 1989. "Technical Inefficiency And Productive Decline In The U.S. Interstate Natural Gas Pipline Industry Under The Natural Gas Policy Act," Working Papers 89-20, C.V. Starr Center for Applied Economics, New York University.
- Alger, Dan & Toman, Michael A, 1990. "Market-Based Regulation of Natural Gas Pipelines," Journal of Regulatory Economics, Springer, vol. 2(3), pages 263-80, September.
- Simar, Leopold & Wilson, Paul W., 1999.
"Estimating and bootstrapping Malmquist indices,"
European Journal of Operational Research,
Elsevier, vol. 115(3), pages 459-471, June.
- 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.
- Carrington, Roger & Coelli, Tim & Groom, Eric, 2002. "International Benchmarking for Monopoly Price Regulation: The Case of Australian Gas Distribution," Journal of Regulatory Economics, Springer, vol. 21(2), pages 191-216, March.
- Ellig, Jerry & Giberson, Michael, 1993. "Scale, Scope, and Regulation in the Texas Gas Transmission Industry," Journal of Regulatory Economics, Springer, vol. 5(1), pages 79-90, March.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Léopold Simar, 2003. "Detecting Outliers in Frontier Models: A Simple Approach," Journal of Productivity Analysis, Springer, vol. 20(3), pages 391-424, November.
- Wilson, Paul W, 1993. "Detecting Outliers in Deterministic Nonparametric Frontier Models with Multiple Outputs," Journal of Business & Economic Statistics, American Statistical Association, vol. 11(3), pages 319-23, July.
When requesting a correction, please mention this item's handle: RePEc:cam:camdae:0812. 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: (Jake Dyer)
If references are entirely missing, you can add them using this form.