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Wind of change: Small-scale electricity production and distribution-grid efficiency in Sweden

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  • Vesterberg, Mattias
  • Zhou, Wenchao
  • Lundgren, Tommy

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 a two-stage data envelopment analysis to model the technical efficiency and a double bootstrap approach to estimate the determinants of inefficiencies, we show that firms are heterogeneous in terms of inefficiency, but that a large share of small and micro-scale generation is not associated with more inefficient operations.

Suggested Citation

  • Vesterberg, Mattias & Zhou, Wenchao & Lundgren, Tommy, 2021. "Wind of change: Small-scale electricity production and distribution-grid efficiency in Sweden," Utilities Policy, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:juipol:v:69:y:2021:i:c:s0957178721000096
    DOI: 10.1016/j.jup.2021.101175
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    References listed on IDEAS

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    Cited by:

    1. Söderberg, Magnus & Vesterberg, Mattias, 2023. "How demand uncertainty influences electricity network prices under revenue-cap regulation: The case of Sweden," Energy Economics, Elsevier, vol. 127(PB).
    2. Ikram, Majid & Rafique, Muhammad Zahid & Mohammed, Kamel Si & Waheed, Rida & Ferraz, Diogo, 2023. "Efficient resource utilization of the electricity distribution sector using nonparametric data envelopment analysis and influential factors," Utilities Policy, Elsevier, vol. 82(C).
    3. Hou, Zheng & Roseta-Palma, Catarina & Ramalho, Joaquim J.S., 2024. "Can operational efficiency in the Portuguese electricity sector be improved? Yes, but..," Energy Policy, Elsevier, vol. 190(C).

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    More about this item

    Keywords

    Data envelopment analysis; Bootstrap; Efficiency;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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