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Costs, technology and ownership of gas distribution in Italy

Author

Listed:
  • Paola Fabbri

    (Ministry of Treasury, Rome, Italy)

  • Giovanni Fraquelli

    (University of Turin and Ceris-CNR, Turin, Italy)

  • Roberto Giandrone

    (Italgas S.p.A. and Ceris-CNR, Turin, Italy)

Abstract

This paper proposes an empirical study of the Italian gas distribution industry by means of long-term cost function. The analysis highlights the fact that the number of customers is more important than the amount of gas delivered in explaining the variability of distribution costs. Very low economies of scale, high economies of density, and the significant role of the morphologic and demographic variables characterize the nature of the technology. Better performance for private operators indicates that the privatization process should continue and the low degree of economies of scale confirms the benefits of having many operators (yardstick competition). Copyright © 2000 John Wiley & Sons, Ltd.

Suggested Citation

  • Paola Fabbri & Giovanni Fraquelli & Roberto Giandrone, 2000. "Costs, technology and ownership of gas distribution in Italy," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(2), pages 71-81.
    • Handle: RePEc:wly:mgtdec:v:21:y:2000:i:2:p:71-81
    DOI: 10.1002/1099-1468(200003)21:2<71::AID-MDE972>3.0.CO;2-Y
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    References listed on IDEAS

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    Cited by:

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    3. Casarin, Ariel A., 2007. "Efficient industry configurations in downstream gas markets. An empirical assessment," Energy Economics, Elsevier, vol. 29(2), pages 312-328, March.
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    5. Giovanni Fraquelli & Roberto Giandrone, 2001. "Waste Water Purification In Italy: Costs And Structure Of The Technology," CERIS Working Paper 200102, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    6. Farsi, Mehdi & Filippini, Massimo & Kuenzle, Michael, 2007. "Cost efficiency in the Swiss gas distribution sector," Energy Economics, Elsevier, vol. 29(1), pages 64-78, January.
    7. Byoung-Kuk Ju & Seung-Hoon Yoo & Chulwoo Baek, 2022. "Economies of Scale in City Gas Sector in Seoul, South Korea: Evidence from an Empirical Investigation," Sustainability, MDPI, vol. 14(9), pages 1-14, April.
    8. 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).
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    10. Erbetta, Fabrizio & Rappuoli, Luca, 2008. "Optimal scale in the Italian gas distribution industry using data envelopment analysis," Omega, Elsevier, vol. 36(2), pages 325-336, April.
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