TY - JOUR
T1 - Vertical and horizontal scope economies in the regulated US electricity power industry
AU - Arocena, Pablo
AU - Saal, David S.
AU - Coelli, Tim
PY - 2012/9
Y1 - 2012/9
N2 - This paper investigates vertical economies between generation and distribution of electric power, and horizontal economies between different types of power generation in the U.S. electric utility industry. Our quadratic cost function model includes three generation output measures (hydro, nuclear and fossil fuels), which allows us to analyze the effect that generation mix has on vertical economies. Our results provide (sample mean) estimates of vertical economies of 8.1% and horizontal economies of 5.4%. An extensive sensitivity analysis is used to show how the scope measures vary across alternative model specifications and firm types.
AB - This paper investigates vertical economies between generation and distribution of electric power, and horizontal economies between different types of power generation in the U.S. electric utility industry. Our quadratic cost function model includes three generation output measures (hydro, nuclear and fossil fuels), which allows us to analyze the effect that generation mix has on vertical economies. Our results provide (sample mean) estimates of vertical economies of 8.1% and horizontal economies of 5.4%. An extensive sensitivity analysis is used to show how the scope measures vary across alternative model specifications and firm types.
UR - http://www.scopus.com/inward/record.url?scp=84867666347&partnerID=8YFLogxK
UR - http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6451.2012.00486.x/abstract
U2 - 10.1111/j.1467-6451.2012.00486.x
DO - 10.1111/j.1467-6451.2012.00486.x
M3 - Article
AN - SCOPUS:84867666347
SN - 0022-1821
VL - 60
SP - 434
EP - 467
JO - Journal of Industrial Economics
JF - Journal of Industrial Economics
IS - 3
ER -