Wind of Change: Small-Scale Electricity Production and Distribution Grid Efficiency in Sweden

20 Pages Posted: 11 May 2020

See all articles by Mattias Vesterberg

Mattias Vesterberg

University of Umea - Centre for Environmental and Resource Economics

Wenchao Zhou

Swedish University of Agricultural Sciences (SLU) - Center for Environmental and Resource Economics (CERE)

Tommy Lundgren

Umea School of Business and Economics

Date Written: April 15, 2020

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.

Keywords: Data Envelope Analysis, Bootstrap, Efficiency

JEL Classification: C14, D42, Q41

Suggested Citation

Vesterberg, Mattias and Zhou, Wenchao and Lundgren, Tommy, Wind of Change: Small-Scale Electricity Production and Distribution Grid Efficiency in Sweden (April 15, 2020). Available at SSRN: https://ssrn.com/abstract=3577200 or http://dx.doi.org/10.2139/ssrn.3577200

Mattias Vesterberg (Contact Author)

University of Umea - Centre for Environmental and Resource Economics ( email )

Umeå, S-901 87
Sweden

Wenchao Zhou

Swedish University of Agricultural Sciences (SLU) - Center for Environmental and Resource Economics (CERE)

Almas Allé 10
Umeå, 750 07
Sweden

Tommy Lundgren

Umea School of Business and Economics ( email )

Biblioteksgränd 6
Umea, 901 87
Sweden

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