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Economies of Scale in the Swiss Hydropower Sector

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  • Massimo Filippini

    (Center for Energy Policy and Economics CEPE, Department of Management, Technology and Economics, ETH Zurich, Switzerland)

  • Cornelia Luchsinger

    (Center for Energy Policy and Economics CEPE, Department of Management, Technology and Economics, ETH Zurich, Switzerland)

Abstract

The paper considers the estimation of a translog cost function employing panel data for a sample of 43 Swiss hydropower companies, over the period of 1995-2002. The results of this analysis indicate the existence of economies of scale and density for most output levels. The basic novelty in this paper is the estimation of a cost function for a sample of hydropower companies. In the economic literature no study on the cost structure of the hydropower plants using an econometric approach has been published so far.

Suggested Citation

  • Massimo Filippini & Cornelia Luchsinger, 2005. "Economies of Scale in the Swiss Hydropower Sector," CEPE Working paper series 05-44, CEPE Center for Energy Policy and Economics, ETH Zurich.
    • Handle: RePEc:cee:wpcepe:05-44
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    References listed on IDEAS

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    1. Ramos-Real, Francisco Javier, 2005. "Cost functions and the electric utility industry. A contribution to the debate on deregulation," Energy Policy, Elsevier, vol. 33(1), pages 69-87, January.
    2. Mehdi Farsi & Massimo Filippini, 2004. "Regulation and Measuring Cost-Efficiency with Panel Data Models: Application to Electricity Distribution Utilities," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 25(1), pages 1-19, August.
    3. L. Dean Hiebert, 2002. "The Determinants of the Cost Efficiency of Electric Generating Plants: A Stochastic Frontier Approach," Southern Economic Journal, John Wiley & Sons, vol. 68(4), pages 935-946, April.
    4. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, October.
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    Cited by:

    1. Reinhard Madlener & Stefan Vögtli, 2006. "Diffusion of bioenergy in urban areas: socio-economic analysis of the planned Swiss wood-fired cogeneration plant in Basel," CEPE Working paper series 06-53, CEPE Center for Energy Policy and Economics, ETH Zurich.
    2. Madlener, Reinhard & Koller, Martin, 2007. "Economic and CO2 mitigation impacts of promoting biomass heating systems: An input-output study for Vorarlberg, Austria," Energy Policy, Elsevier, vol. 35(12), pages 6021-6035, December.
    3. Banfi, Silvia & Filippini, Massimo, 2010. "Resource rent taxation and benchmarking--A new perspective for the Swiss hydropower sector," Energy Policy, Elsevier, vol. 38(5), pages 2302-2308, May.
    4. Oladosu, Gbadebo A. & Werble, Joseph & Tingen, William & Witt, Adam & Mobley, Miles & O'Connor, Patrick, 2021. "Costs of mitigating the environmental impacts of hydropower projects in the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    5. Massimo Filippini & Thomas Geissmann & William H. Greene, 2018. "Persistent and transient cost efficiency—an application to the Swiss hydropower sector," Journal of Productivity Analysis, Springer, vol. 49(1), pages 65-77, February.
    6. Byoung-Kuk Ju & Seung-Hoon Yoo & Chulwoo Baek, 2022. "Economies of Scale in City Gas Sector in Seoul, South Korea: Evidence from an Empirical Investigation," Sustainability, MDPI, vol. 14(9), pages 1-14, April.
    7. Silvia Banfi & Massimo Filippini & Andrea Horehájová, 2012. "Using a choice experiment to estimate the benefits of a reduction of externalities in urban areas with special focus on electrosmog," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 387-397, January.
    8. Silvia Banfi & Massimo Filippini & Andrea Horehájová, 2007. "Hedonic Price Functions for Zurich and Lugano with Special Focus on Electrosmog," CEPE Working paper series 07-57, CEPE Center for Energy Policy and Economics, ETH Zurich.
    9. See, Kok Fong & Coelli, Tim, 2014. "Total factor productivity analysis of a single vertically integrated electricity utility in Malaysia using a Törnqvist index method," Utilities Policy, Elsevier, vol. 28(C), pages 62-72.
    10. Bottasso, Anna & Conti, Maurizio, 2009. "Scale economies, technology and technical change in the water industry: Evidence from the English water only sector," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 138-147, March.
    11. Reinhard Madlener & Carlos Henggeler Antunes & Luis C. Dias, 2006. "Multi-Criteria versus Data Envelopment Analysis for Assessing the Performance of Biogas Plants," CEPE Working paper series 06-49, CEPE Center for Energy Policy and Economics, ETH Zurich.
    12. Kok Fong See & Tim Coelli, 2009. "The Effects of Competition Policy on TFP Growth: Some Evidence from the Malaysian Electricity Supply Industry," CEPA Working Papers Series WP062009, School of Economics, University of Queensland, Australia.
    13. Machado, Mauricio Marins & de Sousa, Maria Conceição Sampaio & Hewings, Geoffrey, 2016. "Economies of scale and technological progress in electric power production: The case of Brazilian utilities," Energy Economics, Elsevier, vol. 59(C), pages 290-299.
    14. Arias-Gaviria, Jessica & van der Zwaan, Bob & Kober, Tom & Arango-Aramburo, Santiago, 2017. "The prospects for Small Hydropower in Colombia," Renewable Energy, Elsevier, vol. 107(C), pages 204-214.

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