| ID | 127198 |
| Title Proper | Scale economies and optimal size in the Swiss gas distribution sector |
| Language | ENG |
| Author | Alaeifar, Mozhgan ; Farsi, Mehdi ; Filippini, Massimo |
| Publication | 2014. |
| Summary / Abstract (Note) | This paper studies the cost structure of Swiss gas distribution utilities. Several econometric models are applied to a panel of 26 companies over 1996-2000. Our main objective is to estimate the optimal size and scale economies of the industry and to study their possible variation with respect to network characteristics. The results indicate the presence of unexploited scale economies. However, very large companies in the sample and companies with a disproportionate mixture of output and density present an exception. Furthermore, the estimated optimal size for majority of companies in the sample has shown a value far greater than the actual size, suggesting remarkable efficiency gains by reorganization of the industry. The results also highlight the effect of customer density on optimal size. Networks with higher density or greater complexity have a lower optimal size |
| `In' analytical Note | Energy Policy Vol.65, No. ; February 2014: p.86-93 |
| Journal Source | Energy Policy Vol.65, No. ; February 2014: p.86-93 |
| Key Words | Scale Economics ; Gas Distribution ; Unobserved Heterogeneity ; Scale Economies ; Optimal Size ; Economic Model ; Switzerland ; Swiss Gas ; Gas Distribution Utilities ; Econometric Models ; Economics |