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Wind of change: Small-scale electricity production and distribution grid efficiency in Sweden

Author

Listed:
  • Vesterberg, Mattias

    (CERE - the Center for Environmental and Resource Economics)

  • Zhou, Wenchao

    (CERE - the Center for Environmental and Resource Economics)

  • Lundgren, Tommy

    (CERE - the Center for Environmental and Resource Economics)

Abstract

In this paper, we measure the technical efficiency for local electricity distribution firms in Sweden, and in particular how small- and micro-scale generation affects efficiency scores. Using two-stage data envelope analysis to model the technical efficiency and a double bootstrap approach to estimate the determinants of inefficiencies, we show that firms are heterogenous in terms of inefficiency, but that a large share of small- and micro-scale generation is not associated with more inefficient operations.

Suggested Citation

  • Vesterberg, Mattias & Zhou, Wenchao & Lundgren, Tommy, 2020. "Wind of change: Small-scale electricity production and distribution grid efficiency in Sweden," CERE Working Papers 2020:4, CERE - the Center for Environmental and Resource Economics.
    • Handle: RePEc:hhs:slucer:2020_004
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    More about this item

    Keywords

    Data Envelope Analysis; Bootstrap; Efficiency;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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