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Electricity rates and the funding of municipal broadband networks: An empirical analysis

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  • Ford, George S.

Abstract

Most Government-Owned Broadband Networks (“GONs”) are funded by city finances in some way, in some cases by shifting costs to a municipally-operated electric utility. This shift of broadband costs to the electric utility is expected to increase electricity rates, while other funding arrangements are not expected to affect electricity rates of the municipal utilities. In this article, a statistical analysis is conducted on the municipal electric utility rates of four Tennessee cities that constructed GONs in or around 2008. Using electric utility data from the Energy Information Administration, the analysis starkly reveals sizable electric utility rates increases for residential and commercial customers when the utility-funded model is used, but not for alternative funding arrangements.

Suggested Citation

  • Ford, George S., 2021. "Electricity rates and the funding of municipal broadband networks: An empirical analysis," Energy Economics, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:eneeco:v:102:y:2021:i:c:s0140988321003613
    DOI: 10.1016/j.eneco.2021.105475
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    References listed on IDEAS

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    1. Timothy G. Conley & Christopher R. Taber, 2011. "Inference with "Difference in Differences" with a Small Number of Policy Changes," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 113-125, February.
    2. Hauge, Janice A. & Jamison, Mark A. & Gentry, Richard J., 2008. "Bureaucrats as entrepreneurs: Do municipal telecommunications providers hinder private entrepreneurs," Information Economics and Policy, Elsevier, vol. 20(1), pages 89-102, March.
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