Wind of Change: Small-Scale Electricity Production and Distribution Grid Efficiency in Sweden
20 Pages Posted: 11 May 2020
Date Written: April 15, 2020
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
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