Controlling for environmental conditions in regulatory benchmarking
Bibliographic Data
| ID | 12246791 |
|---|---|
| Authors | Emil Heesche (0000-0002-0017-5068, University of Copenhagen, corresponding author), Mette Asmild (0000-0002-7272-1048, University of Copenhagen) |
| Year | 2022 |
| Volume | 77 |
| Pages | 101390-101390 |
| Publication date | 2022-06-09 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Utilities Policy (JOURNAL) |
| Journal identifiers | ISSN: 0957-1787 • E-ISSN: 1878-4356 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.jup.2022.101390 |
| OpenAlex | W3114972963 |
| Language | EN |
| References cited | 28 |
Regulators often use Data Envelopment Analysis (DEA) to create a pseudo-competitive environment for sectors with natural monopolies. In this paper, we look at the characteristics of the method used by the Danish water regulator to account for differences in the companies’ environmental conditions and propose adjustments to this method. Second stage analysis reveals significant correlations between the efficiency scores and these external factors, indicating that the currently used method is insufficient. To explain this, we develop a new second stage analysis, using permutation-based approaches, where we account for the distribution of the DEA assigned multipliers
Benchmarking · Business · Economics · Environmental economics · Efficiency Analysis Using DEA · Marketing
Permutation inference for the general linear model
Estimation and inference in two-stage, semi-parametric models of production processes
Nonparametric frontier estimation
Quantitative studies of water and sanitation utilities
Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error
Pitfalls and protocols in DEA
Estimation of Relationships for Limited Dependent Variables
Measuring the efficiency of decision making units
Formulation and estimation of stochastic frontier production function models
Full cost recovery of water services and the 3 T's of OECD
Sustainable tariffs for water and wastewater services
Price-cap regulation in the English and Welsh water industry
| Citation velocity | historical |
|---|---|
| Highly cited | No |