IDEAS home Printed from https://ideas.repec.org/a/spr/jecfin/v26y2002i2p123-137.html
   My bibliography  Save this article

A data envelopment analysis of gas utilities' efficiency

Author

Listed:
  • Daniel Hollas
  • Kenneth Macleod
  • Stanley Stansell

Abstract

This study examines the Natural Gas Policy Act of 1978 and Federal Energy Regulatory Commission (FERC) policies that culminated in Order 636 in 1992. The regulatory environment in which natural gas distribution utilities operate was altered. FERC policies forced local gas distribution utilities into an increasingly competitive environment. Restructuring of the industry may affect economic efficiency. Data Envelopment Analysis is used to examine the economic efficiency of gas distributors during 1975–94. Federal policy appears to lead to a reduction in scale due to restructuring and more competition. Reduced scale economies have not altered the economic efficiency of the utilities. Copyright Springer 2002

Suggested Citation

  • Daniel Hollas & Kenneth Macleod & Stanley Stansell, 2002. "A data envelopment analysis of gas utilities' efficiency," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 26(2), pages 123-137, June.
    • Handle: RePEc:spr:jecfin:v:26:y:2002:i:2:p:123-137
    DOI: 10.1007/BF02755980
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02755980
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF02755980?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. F. M. Scherer, 1967. "Research and Development Resource Allocation Under Rivalry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 81(3), pages 359-394.
    2. Hollas, Daniel R. & Herren, Robert Stanley, 1982. "An estimation of the deadweight and x-efficiency losses in the municipal electric industry," Journal of Economics and Business, Elsevier, vol. 34(3), pages 269-281.
    3. Thomas C. Gorak & Dennis J. Ray, 1995. "Efficiency and Equity in the Transition to a New Natural Gas Market," Land Economics, University of Wisconsin Press, vol. 71(3), pages 368-385.
    4. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Neumann, Anne & Nieswand, Maria & Schubert, Torben, 2016. "Estimating Alternative Technology Sets in Nonparametric Efficiency Analysis: Restriction Tests for Panel and Clustered Data," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 45(1), pages 35-51.
    2. Ariel Casarin, 2014. "Productivity throughout regulatory cycles in gas utilities," Journal of Regulatory Economics, Springer, vol. 45(2), pages 115-137, April.
    3. Corrado Lo Storto, 2018. "Efficiency, Conflicting Goals and Trade-Offs: A Nonparametric Analysis of the Water and Wastewater Service Industry in Italy," Sustainability, MDPI, vol. 10(4), pages 1-22, March.
    4. Brooks, Mary R. & Cullinane, Kevin, 2006. "Chapter 26 Conclusions and Research Agenda," Research in Transportation Economics, Elsevier, vol. 17(1), pages 631-660, January.
    5. Gugler, Klaus & Liebensteiner, Mario, 2019. "Productivity growth and incentive regulation in Austria's gas distribution," Energy Policy, Elsevier, vol. 134(C).
    6. Carlos F. Ceballos Ferroglio & Gustavo Ferro & Ã ngel Enrique Neder, 2024. "Regulatory lag, efficiency, and performance. Lessons from a case study," Competition and Regulation in Network Industries, , vol. 25(1), pages 43-66, March.
    7. Capece, Guendalina & Costa, Roberta & Di Pillo, Francesca, 2021. "Benchmarking the efficiency of natural gas distribution utilities in Italy considering size, ownership, and maturity," Utilities Policy, Elsevier, vol. 72(C).
    8. Giovanni Fraquelli, 2007. "Optimal Scale and Efficiency of the Italian Public Utilities," L'industria, Società editrice il Mulino, issue 1, pages 205-228.
    9. J Sarkis & J J Cordeiro, 2009. "Investigating technical and ecological efficiencies in the electricity generation industry: are there win-win opportunities?," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(9), pages 1160-1172, September.
    10. Delmas, Magali & Tokat, Yesim, 2003. "Deregulation Process, Governance Structures and Efficiency: The U.S. Electric Utility Sector," Research Papers 1790, Stanford University, Graduate School of Business.
    11. Corrado Lo Storto, 2018. "A Nonparametric Economic Analysis of the US Natural Gas Transmission Infrastructure: Efficiency, Trade-Offs and Emerging Industry Configurations," Energies, MDPI, vol. 11(3), pages 1-24, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simpson, N.C. & Tacheva, Zhasmina & Kao, Ta-Wei, 2023. "Semi-directedness: New network concepts for supply chain research," International Journal of Production Economics, Elsevier, vol. 256(C).
    2. Wen-Min Lu & Qian Long Kweh & Chung-Wei Wang, 2021. "Integration and application of rough sets and data envelopment analysis for assessments of the investment trusts industry," Annals of Operations Research, Springer, vol. 296(1), pages 163-194, January.
    3. Franz R. Hahn, 2007. "Determinants of Bank Efficiency in Europe. Assessing Bank Performance Across Markets," WIFO Studies, WIFO, number 31499, March.
    4. Alperovych, Yan & Hübner, Georges & Lobet, Fabrice, 2015. "How does governmental versus private venture capital backing affect a firm's efficiency? Evidence from Belgium," Journal of Business Venturing, Elsevier, vol. 30(4), pages 508-525.
    5. Wang, Zhao-Hua & Zeng, Hua-Lin & Wei, Yi-Ming & Zhang, Yi-Xiang, 2012. "Regional total factor energy efficiency: An empirical analysis of industrial sector in China," Applied Energy, Elsevier, vol. 97(C), pages 115-123.
    6. Azarnoosh Kafi & Behrouz Daneshian & Mohsen Rostamy-Malkhalifeh, 2021. "Forecasting the confidence interval of efficiency in fuzzy DEA," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 31(1), pages 41-59.
    7. Ruiqing Yuan & Xiangyang Xu & Yanli Wang & Jiayi Lu & Ying Long, 2024. "Evaluating Carbon-Emission Efficiency in China’s Construction Industry: An SBM-Model Analysis of Interprovincial Building Heating," Sustainability, MDPI, vol. 16(6), pages 1-16, March.
    8. Costa, Marcelo Azevedo & Lopes, Ana Lúcia Miranda & de Pinho Matos, Giordano Bruno Braz, 2015. "Statistical evaluation of Data Envelopment Analysis versus COLS Cobb–Douglas benchmarking models for the 2011 Brazilian tariff revision," Socio-Economic Planning Sciences, Elsevier, vol. 49(C), pages 47-60.
    9. Gilligan, Daniel O., 1998. "Farm Size, Productivity, And Economic Efficiency: Accounting For Differences In Efficiency Of Farms By Size In Honduras," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20918, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Ahmad, Usman, 2011. "Financial Reforms and Banking Efficiency: Case of Pakistan," MPRA Paper 34220, University Library of Munich, Germany.
    11. Ashrafi, Ali & Seow, Hsin-Vonn & Lee, Lai Soon & Lee, Chew Ging, 2013. "The efficiency of the hotel industry in Singapore," Tourism Management, Elsevier, vol. 37(C), pages 31-34.
    12. Juan Aparicio & Jesus T. Pastor & Jose L. Sainz-Pardo & Fernando Vidal, 2020. "Estimating and decomposing overall inefficiency by determining the least distance to the strongly efficient frontier in data envelopment analysis," Operational Research, Springer, vol. 20(2), pages 747-770, June.
    13. Büschken, Joachim, 2009. "When does data envelopment analysis outperform a naïve efficiency measurement model?," European Journal of Operational Research, Elsevier, vol. 192(2), pages 647-657, January.
    14. António Afonso & Ana Patricia Montes & José M. Domínguez, 2024. "Measuring Tax Burden Efficiency in OECD Countries: An International Comparison," CESifo Working Paper Series 11333, CESifo.
    15. Barros, Carlos Pestana & Williams, Jonathan, 2013. "The random parameters stochastic frontier cost function and the effectiveness of public policy: Evidence from bank restructuring in Mexico," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 98-108.
    16. Andreas Dellnitz & Andreas Kleine & Madjid Tavana, 2024. "An integrated data envelopment analysis and regression tree method for new product price estimation," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 46(4), pages 1189-1211, December.
    17. Watkins, K. Bradley & Hristovska, Tatjana & Mazzanti, Ralph & Wilson, Charles E. Jr & Schmidt, Lance, 2014. "Measurement of Technical, Allocative, Economic, and Scale Efficiency of Rice Production in Arkansas Using Data Envelopment Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(1), pages 1-18, February.
    18. Jahangoshai Rezaee, Mustafa & Jozmaleki, Mehrdad & Valipour, Mahsa, 2018. "Integrating dynamic fuzzy C-means, data envelopment analysis and artificial neural network to online prediction performance of companies in stock exchange," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 489(C), pages 78-93.
    19. Suhyeon Han & Shinyoung Park & Sejin An & Wonjun Choi & Mina Lee, 2023. "Research on Analyzing the Efficiency of R&D Projects for Climate Change Response Using DEA–Malmquist," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    20. Chenini Hajer & Jarboui Anis, 2018. "Analysis of the Impact of Governance on Bank Performance: Case of Commercial Tunisian Banks," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(3), pages 871-895, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecfin:v:26:y:2002:i:2:p:123-137. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.