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Productivity Growth and Technical Change in the Generation of Electricity

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  • Paul L. Joskow

Abstract

No student of the electric power industry and its regulation can help but be troubled by the industry's recent historical record on productivity and technical change. For many years the electric power industry was one of the leading sectors of the economy in terms of productivity growth and technological innovation. This is no longer true. By almost every measure, productivity growth and technical change have virtually ceased in the past decade (or even decreased, by some estimates).

Suggested Citation

  • Paul L. Joskow, 1987. "Productivity Growth and Technical Change in the Generation of Electricity," The Energy Journal, , vol. 8(1), pages 17-38, July.
    • Handle: RePEc:sae:enejou:v:8:y:1987:i:1:p:17-38
    DOI: 10.5547/ISSN0195-6574-EJ-Vol8-No1-2
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    Cited by:

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    3. Naughten, Barry, 2003. "Economic assessment of combined cycle gas turbines in Australia: Some effects of microeconomic reform and technological change," Energy Policy, Elsevier, vol. 31(3), pages 225-245, February.
    4. Frank A. Wolak, 2014. "Regulating Competition in Wholesale Electricity Supply," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 195-289, National Bureau of Economic Research, Inc.
    5. Changqi Wu & Leonard K. Cheng, 2000. "Hong Kong's Business Regulation in Transition," NBER Chapters, in: Deregulation and Interdependence in the Asia-Pacific Region, pages 157-194, National Bureau of Economic Research, Inc.
    6. Paul Simshauser & Farhad Billimoria & Craig Rogers, 2021. "Optimising VRE plant capacity in Renewable Energy Zones," Working Papers EPRG2121, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    7. Marino, Marianna & Parrotta, Pierpaolo & Valletta, Giacomo, 2019. "Electricity (de)regulation and innovation," Research Policy, Elsevier, vol. 48(3), pages 748-758.
    8. Siddiqui, Afzal S. & Marnay, Chris, 2008. "Distributed generation investment by a microgrid under uncertainty," Energy, Elsevier, vol. 33(12), pages 1729-1737.
    9. Gohdes, Nicholas & Simshauser, Paul & Wilson, Clevo, 2022. "Renewable entry costs, project finance and the role of revenue quality in Australia's National Electricity Market," Energy Economics, Elsevier, vol. 114(C).
    10. Simshauser, Paul & Billimoria, Farhad & Rogers, Craig, 2022. "Optimising VRE capacity in Renewable Energy Zones," Energy Economics, Elsevier, vol. 113(C).
    11. Simshauser, Paul, 2024. "On static vs. dynamic line ratings in renewable energy zones," Energy Economics, Elsevier, vol. 129(C).
    12. Paul Simshauser, 2022. "On dividends and market valuations of Australia’s listed electricity utilities: regulated vs. merchant," Working Papers EPRG2210, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    13. Arocena, Pablo, 2008. "Cost and quality gains from diversification and vertical integration in the electricity industry: A DEA approach," Energy Economics, Elsevier, vol. 30(1), pages 39-58, January.
    14. Kumkar, Lars, 1996. "Wettbewerb im Stromsektor der USA I: Re-Regulierung der Großhandelsebene," Kiel Working Papers 738, Kiel Institute for the World Economy (IfW Kiel).
    15. Frederic H. Murphy & Howard J. Weiss, 1990. "An approach to modeling electric utility capacity expansion planning," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(6), pages 827-845, December.
    16. List John A. & Millimet Daniel L & McHone Warren, 2004. "The Unintended Disincentive in the Clean Air Act," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(2), pages 1-28, February.
    17. Jaccard, Mark, 1995. "Oscillating currents : The changing rationale for government intervention in the electricity industry," Energy Policy, Elsevier, vol. 23(7), pages 579-592, July.
    18. Frank A. Wolak, 2000. "Market Design and Price Behavior in Restructured Electricity Markets: An International Comparison," NBER Chapters, in: Deregulation and Interdependence in the Asia-Pacific Region, pages 79-137, National Bureau of Economic Research, Inc.
    19. Simshauser, Paul, 2023. "On dividend policy and market valuations of Australia’s listed electricity utilities: Regulated vs. merchant," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 696-715.
    20. Simshauser, Paul, 2021. "Vertical integration, peaking plant commitments and the role of credit quality in energy-only markets," Energy Economics, Elsevier, vol. 104(C).
    21. Kumkar, Lars, 1996. "Wettbewerb im Stromsektor der USA II: Re-Regulierung der Einzelhandelsebene im Bundesstaat Kalifornien," Kiel Working Papers 739, Kiel Institute for the World Economy (IfW Kiel).
    22. Paul Simshauser, 2020. "Merchant utilities and boundaries of the firm: vertical integration in energy-only markets," Working Papers EPRG2008, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    23. Malcolm Abbott, 2024. "Network utility price regulation in Australia in the pre-first world war years," Competition and Regulation in Network Industries, , vol. 25(1), pages 3-18, March.
    24. Maung, Thein A., 2006. "Market Penetration of Biomass Fuels for Electricity Generation," 2006 Annual meeting, July 23-26, Long Beach, CA 21377, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    25. Denny Ellerman, A., 1996. "The competition between coal and natural gas the importance of sunk costs," Resources Policy, Elsevier, vol. 22(1-2), pages 33-42.

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    More about this item

    Keywords

    Electricity generation; Productivity growth; Technology change; Thermal efficiency;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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