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Scale, Governance and Net Zero: Decentralisation vs Centralisation in Electricity

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  • Pollitt, M. G.

Abstract

This paper explores the concept of scale within the future electricity sector. First, we discuss the theory and evidence behind economies of scale and scope and how they might apply to firm sizes within the electricity supply sector. Next, we consider how the governance of the electricity sector might influence firm scale. Finally, we explore how the nature of what is required to get to net zero might shape firm scales. Overall, we suggest that decentralisation trends within the electricity sector do not clearly imply that large firms will become less significant in a net zero electricity sector.

Suggested Citation

  • Pollitt, M. G., 2025. "Scale, Governance and Net Zero: Decentralisation vs Centralisation in Electricity," Cambridge Working Papers in Economics 2513, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:2513
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    References listed on IDEAS

    as
    1. Teece, David J., 1980. "Economies of scope and the scope of the enterprise," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 223-247, September.
    2. Edward L. Glaeser, 2001. "Public Ownership in the American City," Harvard Institute of Economic Research Working Papers 1930, Harvard - Institute of Economic Research.
    3. Pollitt, Michael G. & Steer, Steven J., 2012. "Economies of scale and scope in network industries: Lessons for the UK water and sewerage sectors," Utilities Policy, Elsevier, vol. 21(C), pages 17-31.
    4. Robert E. Lucas Jr., 1978. "On the Size Distribution of Business Firms," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 508-523, Autumn.
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    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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