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The environmental and efficiency effects of restructuring on the electric power sector in the United States: An empirical analysis

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  • Sharabaroff, Alexander
  • Boyd, Roy
  • Chimeli, Ariaster

Abstract

Recent measures to restructure the electric power sector in different US states have raised the interest of policy makers, commentators, and the general public as to the actual impact of restructuring on both the economy and the environment. This paper focuses on two aspects of restructuring, namely its potential impact on the efficiency of electricity generation and air pollution. Our empirical results suggest that restructuring contributes to improved efficiency of electricity generation and better air quality through reduced electricity-induced sulfur dioxide (SO2) and carbon dioxide (CO2) emissions, although no effect was found for emissions of nitrous oxides (NOx). These results, in turn could have important implications for policy in this area.

Suggested Citation

  • Sharabaroff, Alexander & Boyd, Roy & Chimeli, Ariaster, 2009. "The environmental and efficiency effects of restructuring on the electric power sector in the United States: An empirical analysis," Energy Policy, Elsevier, vol. 37(11), pages 4884-4893, November.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:11:p:4884-4893
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    2. Ajayi, V. & Weyman-Jones, T., 2021. "State-Level Electricity Generation Efficiency: Do Restructuring and Regulatory Institutions Matter in the US?," Cambridge Working Papers in Economics 2166, Faculty of Economics, University of Cambridge.
    3. Arabi, Behrouz & Munisamy, Susila & Emrouznejad, Ali & Shadman, Foroogh, 2014. "Power industry restructuring and eco-efficiency changes: A new slacks-based model in Malmquist–Luenberger Index measurement," Energy Policy, Elsevier, vol. 68(C), pages 132-145.
    4. 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).
    5. Juyong Lee & Youngsang Cho & Yoonmo Koo & Chansoo Park, 2018. "Effects of Market Reform on Facility Investment in Electric Power Industry: Panel Data Analysis of 27 Countries," Sustainability, MDPI, vol. 10(9), pages 1-16, September.
    6. Asane-Otoo, Emmanuel, 2016. "Competition policies and environmental quality: Empirical analysis of the electricity sector in OECD countries," Energy Policy, Elsevier, vol. 95(C), pages 212-223.

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