Wind of change: Small-scale electricity production and distribution-grid efficiency in Sweden. (April 2021)

• Record Type: Journal Article
• Authors: Vesterberg, Mattias; Zhou, Wenchao; Lundgren, Tommy
• Is Part Of: Utilities policy. Volume 69(2021)
• Publication Date: 2021-04
• Subjects: C14 -- D42 -- Q41; Data envelopment analysis -- Bootstrap -- Efficiency; Public utilities -- United States -- Periodicals; Public utilities -- Government policy -- United States -- Periodicals; 363.6
• DOI: 10.1016/j.jup.2021.101175
• Languages: English
• ISSNs: 0957-1787

Abstract

Abstract: In this paper, we measure the technical efficiency for local electricity distribution firms in Sweden, and in particular how small and micro-scale generation affects efficiency scores. Using a two-stage data envelopment analysis to model the technical efficiency and a double bootstrap approach to estimate the determinants of inefficiencies, we show that firms are heterogeneous in terms of inefficiency, but that a large share of small and micro-scale generation is not associated with more inefficient operations. Highlights: We estimate determinants of firm efficiency. A double bootstrap approach is used. We find large heterogeneity in efficiency. We find no decrease in efficiency from micro generation.