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