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Measuring Productivity Gains from Deregulation of the Japanese Urban Gas Industry

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  • Kenta Tanaka
  • Shunsuke Managi

Abstract

The Japanese government initiated a series of regulatory reforms in the mid-1990s. The Japanese urban gas industry consists of various sized private and non-private firms. Numerous previous studies find that deregulation leads to productivity improvements. We extend the literature by analyzing deregulation, privatization, and other aspects of a regulated industry using unique firm level data. This study measures productivity to evaluate the effect of the deregulation reform. Using data from 205 firms from 1993 to 2004, we find that the deregulation effect differs depending on firm size. Competitive pressure contributes to advanced productivity. The deregulation of gas sales to commercial customers is the most important factor for advancing productivity.

Suggested Citation

  • Kenta Tanaka & Shunsuke Managi, 2013. "Measuring Productivity Gains from Deregulation of the Japanese Urban Gas Industry," The Energy Journal, , vol. 34(4), pages 181-198, October.
    • Handle: RePEc:sae:enejou:v:34:y:2013:i:4:p:181-198
    DOI: 10.5547/01956574.34.4.9
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    Cited by:

    1. Hidemichi Fujii & Kazuma Edamura & Koichi Sumikura & Yoko Furusawa & Naomi Fukuzawa & Shunsuke Managi, 2015. "How enterprise strategies are related to innovation and productivity change: an empirical study of Japanese manufacturing firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(3), pages 248-262, April.
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    3. Catherine Hausman & Lucija Muehlenbachs, 2019. "Price Regulation and Environmental Externalities: Evidence from Methane Leaks," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(1), pages 73-109.
    4. Carlos Barros & Hidemichi Fujii & Shunsuke Managi, 2015. "How scale and ownership are related to financial performance? A productivity analysis of the Chinese banking sector," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-14, December.

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    More about this item

    Keywords

    Productivity analysis; Deregulation reform; Gas industry; Proportional distance function; Natural gas;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities

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