IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/44630.html
   My bibliography  Save this paper

Measuring Productivity Gains from Deregulation of the Japanese Urban Gas Industry

Author

Listed:
  • Tanaka, Kenta
  • Managi, Shunsuke

Abstract

The Japanese government initiated a series of regulatory reforms in the mid-1990s. The Japanese urban gas industry consists of various sized private and non-private firms. Numerous previous studies find that deregulation leads to productivity improvements. We extend the literature by analyzing deregulation, privatization, and other aspects of a regulated industry using unique firm level data. This study measures productivity to evaluate the effect of the deregulation reform. Using data from 205 firms from 1993 to 2004, we find that the deregulation effect differs depending on firm size. Competitive pressure contributes to advanced productivity. The deregulation of gas sales to commercial customers is the most important factor for advancing productivity.

Suggested Citation

  • Tanaka, Kenta & Managi, Shunsuke, 2013. "Measuring Productivity Gains from Deregulation of the Japanese Urban Gas Industry," MPRA Paper 44630, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:44630
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/44630/1/MPRA_paper_44630.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Haynes, Michelle & Thompson, Steve, 1999. "The productivity effects of bank mergers: Evidence from the UK building societies," Journal of Banking & Finance, Elsevier, vol. 23(5), pages 825-846, May.
    2. Gugler, Klaus & Mueller, Dennis C. & Yurtoglu, B. Burcin & Zulehner, Christine, 2003. "The effects of mergers: an international comparison," International Journal of Industrial Organization, Elsevier, vol. 21(5), pages 625-653, May.
    3. Pombo, Carlos & Taborda, Rodrigo, 2006. "Performance and efficiency in Colombia's power distribution system: Effects of the 1994 reform," Energy Economics, Elsevier, vol. 28(3), pages 339-369, May.
    4. Okamura, Tomohito & Furukawa, Michinobu & Ishitani, Hisashi, 2007. "Future forecast for life-cycle greenhouse gas emissions of LNG and city gas 13A," Applied Energy, Elsevier, vol. 84(11), pages 1136-1149, November.
    5. Albert Banal‐Estañol & Jo Seldeslachts, 2011. "Merger Failures," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(2), pages 589-624, June.
    6. Winston, Clifford, 1993. "Economic Deregulation: Days of Reckoning for Microeconomists," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1263-1289, September.
    7. Lahiri,Sajal & Ono,Yoshiyasu, 2007. "Trade and Industrial Policy under International Oligopoly," Cambridge Books, Cambridge University Press, number 9780521038171.
    8. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    9. Andrew N. Kleit & Dek Terrell, 2001. "Measuring Potential Efficiency Gains From Deregulation Of Electricity Generation: A Bayesian Approach," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 523-530, August.
    10. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
    11. Shunsuke Managi, 2007. "Technological Change and Environmental Policy," Books, Edward Elgar Publishing, number 12841.
    12. Nakano, Makiko & Managi, Shunsuke, 2008. "Regulatory reforms and productivity: An empirical analysis of the Japanese electricity industry," Energy Policy, Elsevier, vol. 36(1), pages 201-209, January.
    13. 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.
    14. Odeck, James, 2008. "The effect of mergers on efficiency and productivity of public transport services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(4), pages 696-708, May.
    15. Guan Zhengfei & Alfons Oude Lansink, 2006. "The Source of Productivity Growth in Dutch Agriculture: A Perspective from Finance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 644-656.
    16. Severin Borenstein & James B. Bushnell & Frank A. Wolak, 2002. "Measuring Market Inefficiencies in California's Restructured Wholesale Electricity Market," American Economic Review, American Economic Association, vol. 92(5), pages 1376-1405, December.
    17. Farsi, Mehdi & Filippini, Massimo & Kuenzle, Michael, 2007. "Cost efficiency in the Swiss gas distribution sector," Energy Economics, Elsevier, vol. 29(1), pages 64-78, January.
    18. Andres, Luis & Foster, Vivien & Guasch, Jose Luis, 2006. "The impact of privatization on the performance of the infrastructure sector : the case of electricity distribution in Latin American countries," Policy Research Working Paper Series 3936, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Catherine Hausman & Lucija Muehlenbachs, 2019. "Price Regulation and Environmental Externalities: Evidence from Methane Leaks," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(1), pages 73-109.
    2. Hidemichi Fujii & Kazuma Edamura & Koichi Sumikura & Yoko Furusawa & Naomi Fukuzawa & Shunsuke Managi, 2015. "How enterprise strategies are related to innovation and productivity change: an empirical study of Japanese manufacturing firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(3), pages 248-262, April.
    3. Tanaka, Kenta & Managi, Shunsuke, 2021. "Industrial agglomeration effect for energy efficiency in Japanese production plants," Energy Policy, Elsevier, vol. 156(C).
    4. Carlos Barros & Hidemichi Fujii & Shunsuke Managi, 2015. "How scale and ownership are related to financial performance? A productivity analysis of the Chinese banking sector," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-14, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Assaf, A. George & Barros, Carlos Pestana & Managi, Shunsuke, 2011. "Cost efficiency of Japanese steam power generation companies: A Bayesian comparison of random and fixed frontier models," Applied Energy, Elsevier, vol. 88(4), pages 1441-1446, April.
    2. Nakano, Makiko & Managi, Shunsuke, 2008. "Regulatory reforms and productivity: An empirical analysis of the Japanese electricity industry," Energy Policy, Elsevier, vol. 36(1), pages 201-209, January.
    3. Bigerna, Simona & D'Errico, Maria Chiara & Polinori, Paolo, 2020. "Heterogeneous impacts of regulatory policy stringency on the EU electricity Industry:A Bayesian shrinkage dynamic analysis," Energy Policy, Elsevier, vol. 142(C).
    4. Romano, Teresa & Cambini, Carlo & Fumagalli, Elena & Rondi, Laura, 2022. "Setting network tariffs with heterogeneous firms: The case of natural gas distribution," European Journal of Operational Research, Elsevier, vol. 297(1), pages 280-290.
    5. Bansal, Pooja & Kumar, Sunil & Mehra, Aparna & Gulati, Rachita, 2022. "Developing two dynamic Malmquist-Luenberger productivity indices: An illustrated application for assessing productivity performance of Indian banks," Omega, Elsevier, vol. 107(C).
    6. Tooraj Jamasb & Rabindra Nepal & Govinda Timilsina & Michael Toman, 2014. "Energy Sector Reform, Economic Efficiency and Poverty Reduction," Discussion Papers Series 529, School of Economics, University of Queensland, Australia.
    7. Barros, Carlos Pestana & Peypoch, Nicolas, 2008. "Technical efficiency of thermoelectric power plants," Energy Economics, Elsevier, vol. 30(6), pages 3118-3127, November.
    8. Tanaka, Kenta & Managi, Shunsuke, 2021. "Industrial agglomeration effect for energy efficiency in Japanese production plants," Energy Policy, Elsevier, vol. 156(C).
    9. Zhang, Chunqin & Xiao, Guangnian & Liu, Yong & Yu, Feng, 2018. "The relationship between organizational forms and the comprehensive effectiveness for public transport services in China?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 783-802.
    10. Pompei, Fabrizio, 2013. "Heterogeneous effects of regulation on the efficiency of the electricity industry across European Union countries," Energy Economics, Elsevier, vol. 40(C), pages 569-585.
    11. Frey, Rainer & Hussinger, Katrin, 2006. "The role of technology in M&As: a firm-level comparison of cross-border and domestic deals," Discussion Paper Series 1: Economic Studies 2006,45, Deutsche Bundesbank.
    12. Cheng, Xiaomei & Bjørndal, Endre & Lien, Gudbrand & Bjørndal, Mette, 2015. "Productivity Development for Norwegian Electricity Distribution Companies 2004-2013," Discussion Papers 2015/27, Norwegian School of Economics, Department of Business and Management Science.
    13. Chen, Jiandong & Wu, Yinyin & Song, Malin & Zhu, Zunhong, 2017. "Stochastic frontier analysis of productive efficiency in China's Forestry Industry," Journal of Forest Economics, Elsevier, vol. 28(C), pages 87-95.
    14. Wallsten, Scott, 2002. "Does sequencing matter? regulation and privatization in telecommunications reforms," Policy Research Working Paper Series 2817, The World Bank.
    15. Jindal, Abhinav & Nilakantan, Rahul, 2021. "Falling efficiency levels of Indian coal-fired power plants: A slacks-based analysis," Energy Economics, Elsevier, vol. 93(C).
    16. Chen, Zhongfei & Barros, Carlos Pestana & Borges, Maria Rosa, 2015. "A Bayesian stochastic frontier analysis of Chinese fossil-fuel electricity generation companies," Energy Economics, Elsevier, vol. 48(C), pages 136-144.
    17. Monastyrenko, Evgenii, 2017. "Eco-efficiency outcomes of mergers and acquisitions in the European electricity industry," Energy Policy, Elsevier, vol. 107(C), pages 258-277.
    18. Barros, Carlos Pestana, 2008. "Efficiency analysis of hydroelectric generating plants: A case study for Portugal," Energy Economics, Elsevier, vol. 30(1), pages 59-75, January.
    19. Oliver Tiemann & Jonas Schreyögg, 2012. "Changes in hospital efficiency after privatization," Health Care Management Science, Springer, vol. 15(4), pages 310-326, December.
    20. Muller, Renan Bergonsi & Rego, Erik Eduardo, 2021. "Privatization of electricity distribution in Brazil: Long-term effects on service quality and financial indicators," Energy Policy, Elsevier, vol. 159(C).

    More about this item

    Keywords

    Productivity analysis; Deregulation reform; Gas industry; Proportional distance function; Natural gas;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:44630. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.