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Returns to scale in electricity generation: Replicated and revisited

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  • Bernstein, David H.
  • Parmeter, Christopher F.

Abstract

We replicate the findings of two influential studies on returns to scale in the United States electricity generation market. The main results are contrasted using both local-linear nonparametric regression, a technique robust to parametric functional form assumptions, as well as an updated data set. While the quantitative findings across all of the estimators deployed differ somewhat regarding the magnitude of returns to scale, we document a decrease in returns to scale within the electricity generation market from 1955 to 1996.

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  • Bernstein, David H. & Parmeter, Christopher F., 2019. "Returns to scale in electricity generation: Replicated and revisited," Energy Economics, Elsevier, vol. 82(C), pages 4-15.
    • Handle: RePEc:eee:eneeco:v:82:y:2019:i:c:p:4-15
    DOI: 10.1016/j.eneco.2017.12.024
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    Cited by:

    1. Bernstein, David H., 2020. "An updated assessment of technical efficiency and returns to scale for U.S. electric power plants," Energy Policy, Elsevier, vol. 147(C).

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    More about this item

    Keywords

    System estimation; Shephard's lemma; Seemingly unrelated regression; Nonparametric; Replication;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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    1. Returns to scale in electricity generation: Replicated and revisited (Energy Economics 2019) in ReplicationWiki

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