Alternative Regulatory Methods and Firm Efficiency: Stochastic Frontier Evidence from the U.s. Electricity Industry
نویسنده
چکیده
The use of incentive regulation and other alternative regulatory programs in U.S. electricity markets has grown during the past two decades. Within a stochastic frontier framework, I investigate the effect of individual programs on the technical ef ciency of a large set of coal and natural gas generation units. I nd that those programs tied directly to generator performance and those that modify traditional fuel cost passthrough programs, to provide a greater incentive to reduce fuel costs, are associated with greater ef ciency levels. Other programs have no statistical association with ef ciency levels.
منابع مشابه
Alternative Regulatory Methods and Firm Efficiency: Stochastic Frontiier Evidence from the U.s. Electricity Industry
The use of incentive regulation and other alternative regulatory programs in U.S. electricity markets has grown during the past two decades. Within a stochastic frontier framework, I investigate the effect of individual programs on the technical efficiency of a large set of coal and natural gas generation units. I find that those programs tied directly to generator performance and those that mo...
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