Template-Type: ReDIF-Article 1.0
Author-Name:  Dimitri Dimitropoulos and Adonis Yatchew
Title:  Is Productivity Growth in Electricity Distribution Negative? An Empirical Analysis Using Ontario Data
Classification-JEL: F0
Volume:  Volume 38
Issue:  Number 2
Year:  2017
Abstract:  Electricity industries are experiencing upward cost pressures in many parts of the world. This paper focuses on productivity trends in electricity distribution. We apply two methodologies for estimating productivity growth - an index based approach, and an econometric cost based approach - to data on 73 Ontario distributors for the period 2002 to 2012. The resulting productivity growth estimates are approximately -1% per year, suggesting a reversal of the positive estimates that have generally been reported in previous periods. We implement flexible semi-parametric specifications to assess the robustness of these conclusions and discuss the use of such statistical analyses for calibrating productivity and relative efficiency within a price-cap framework. 
Handle: RePEc:aen:journl:ej38-2-Yatchew
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=2882
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