Journal article

Cost efficiency in the Swiss gas distribution sector

  • Farsi, Mehdi Istituto microeconomia e economia pubblica (MecoP), Facoltà di scienze economiche, Università della Svizzera italiana, Svizzera
  • Filippini, Massimo Istituto microeconomia e economia pubblica (MecoP), Facoltà di scienze economiche, Università della Svizzera italiana, Svizzera
  • Kuenzle, Michael Department of Management, Technology and Economics, ETH Zurich, Switzerland
    2006
Published in:
  • Energy Economics. - Elsevier BV. - 2007, vol. 29, no. 1, p. 64-78
English This paper studies the cost structure of gas distribution utilities in Switzerland. Three stochastic frontier models are applied to a panel of 26 companies operating from 1996 to 2000. Efficiency is assumed to be constant over time. The analysis highlights the importance of output characteristics such as customer density and network size. The results suggest that the utilities could slightly reduce their operating costs by improving efficiency. There is no evidence of significant unexploited scale economies. However, our analysis indicates that the estimates of scale economies could be sensitive to the assumptions regarding the variation of output with output characteristics.
Language
  • English
Classification
Economics
License
License undefined
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Persistent URL
https://susi.usi.ch/usi/documents/318115
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