Deregulation, efficiency and policy determination: An analysis of Australia's electricity distribution sector

A-Tier
Journal: Energy Economics
Year: 2021
Volume: 98
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In 1998, the Australian electricity distribution was deregulated with the aim of promoting competition and reducing retail prices. However, since then these outcomes have not transpired, which raises the question of whether there may be underlying causes leading to inefficiencies within the power distribution industry. To assess the performance of the electricity distribution system and sources of (in)efficiency since deregulation, we employ Simar and Wilson's (2007) double bootstrap data envelopment analysis truncated regression approach. The results suggest that most distributors were operating well below efficient levels for the period concerned. In the second-stage analysis, the results indicate that reliability promotes efficiency suggesting that a focus should be placed on the continuous supply of energy. Specifically, inefficient distributors can improve network reliability by replacing aged poles and the expansion of market size could encourage healthy competition.

Technical Details

RePEc Handle
repec:eee:eneeco:v:98:y:2021:i:c:s0140988321001158
Journal Field
Energy
Author Count
4
Added to Database
2026-01-25