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This study examines the hypothesis that changes to high-powered incentive regulations have a positive efficiency and productivity growth effects in a regulated electricity distribution industry. We estimate an input distance function using the stochastic frontier analysis method to compute technical efficiency scores for 121 Norwegian utilities over the period 2004-2012. We explore sources of productivity growth by parametrically decomposing the Malmquist productivity index into efficiency change, technical change, and scale change. Unlike previous studies, we examine the difference in performance across two regulatory regimes: yardstick competition (2007-2012) and RPI-X incentive regulation (2004-2006). Results show significant efficiency and productivity growth improvements with embodied technical change as the main driver. [ABSTRACT FROM AUTHOR]

In this paper, we test whether producers in the southern Norway price zone utilize information on available transmission capacity to induce transmission congestion in their price zone to exercise market power or not. Endogeneity results for import congestion suggest that congestion is endogenous during late night and morning hours implying that producers in southern Norway restrict their output to induce transmission congestion into their price zone. We find an average markup of about 19.5 percent above the marginal cost during these hours. These results point that NordPool's policy of making transmission capacity information public to ensure market transparency is not welfare maximizing as strategic producers can use this information to anticipate and induce transmission congestion into their price zone for driving prices away from the competitive levels. [ABSTRACT FROM AUTHOR]

Abstract: Many of the earliest studies that sought to test the validity of benefit transfer, which typically involved the use of contingent valuation or travel cost applications, produced negative findings. One of the recommendations from this early testing was to trial alternative methods to produce source studies for benefit transfer, including multi-attribute techniques. Subsequently, there have been a number of studies conducted that have sought to test the validity of benefit transfer using choice modelling. The purpose of this paper is to review these studies, and to assess the current state of knowledge regarding the validity of using choice modelling for the purpose of benefit transfer. We also describe and consider the merits of an alternative approach for extending the use of choice modelling in benefit transfer, Bayesian benefit transfer. [Copyright &y& Elsevier]

Pakistan's energy sector has undergone substantial reforms during the last three decades with the aim to improve its operational performance and to cater to the growing energy needs of the economy. In the wake of these reforms, the WAPDA Act was passed in 1998 to achieve operational and financial efficiencies. Pakistan's electricity market is still hampered by issues like extended blackouts, electricity thefts, high circular debt and poor service quality. The electricity distribution sector is thus an interesting case to investigate its efficiency in the post-reform period by examining the impact of service-quality parameters (SQPs), which have generally been neglected in the literature. Stochastic frontier analysis has been used to estimate technical efficiency, while the Malmquist Productivity Index is implemented to decompose total factor productivity (TFP) into scale change, technical change and efficiency change from 2006 to 2016. We conclude that the technical efficiency score declines from 98 percent to 36 percent with the inclusion of SQPs in the models. The results also indicate a negative trend in scale change, implying that distribution companies are not operating at the technically optimal scale. We propose that the regulatory body should change its governance regime and focus on incentive-based regulation instead of rate-of-return regulation. • We estimate technical efficiency of electricity distribution companies for post-reforms period. • Impact of quality of service parameters has been estimated on technical efficiency using SFA. • Malmquist Productivity Index is implemented to decompose TFP into scale change, technical change and efficiency change. • Technical efficiency score declines from 98 percent to 36 percent with the inclusion of service quality parameters. • We propose greater autonomy of regulatory body and adoption of incentives regulations instead of rate of returns regulations. [ABSTRACT FROM AUTHOR]