Controlling for environmental conditions in regulatory benchmarking

Research output: Contribution to journalJournal articlepeer-review

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Controlling for environmental conditions in regulatory benchmarking. / Heesche, Emil; Asmild, Mette.

In: Utilities Policy, Vol. 77, 101390, 2022.

Research output: Contribution to journalJournal articlepeer-review

Harvard

Heesche, E & Asmild, M 2022, 'Controlling for environmental conditions in regulatory benchmarking', Utilities Policy, vol. 77, 101390. https://doi.org/10.1016/j.jup.2022.101390

APA

Heesche, E., & Asmild, M. (2022). Controlling for environmental conditions in regulatory benchmarking. Utilities Policy, 77, [101390]. https://doi.org/10.1016/j.jup.2022.101390

Vancouver

Heesche E, Asmild M. Controlling for environmental conditions in regulatory benchmarking. Utilities Policy. 2022;77. 101390. https://doi.org/10.1016/j.jup.2022.101390

Author

Heesche, Emil ; Asmild, Mette. / Controlling for environmental conditions in regulatory benchmarking. In: Utilities Policy. 2022 ; Vol. 77.

Bibtex

@article{50de86b0d7db416b86a10a431a146ea6,
title = "Controlling for environmental conditions in regulatory benchmarking",
abstract = "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{\textquoteright} 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.",
keywords = "Data envelopment analysis, Environmental variables, Permutation, Regulation, Second stage analysis",
author = "Emil Heesche and Mette Asmild",
note = "Publisher Copyright: {\textcopyright} 2022 The Authors",
year = "2022",
doi = "10.1016/j.jup.2022.101390",
language = "English",
volume = "77",
journal = "Utilities Policy",
issn = "0957-1787",
publisher = "Pergamon Press",

}

RIS

TY - JOUR

T1 - Controlling for environmental conditions in regulatory benchmarking

AU - Heesche, Emil

AU - Asmild, Mette

N1 - Publisher Copyright: © 2022 The Authors

PY - 2022

Y1 - 2022

N2 - 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.

AB - 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.

KW - Data envelopment analysis

KW - Environmental variables

KW - Permutation

KW - Regulation

KW - Second stage analysis

U2 - 10.1016/j.jup.2022.101390

DO - 10.1016/j.jup.2022.101390

M3 - Journal article

AN - SCOPUS:85131599057

VL - 77

JO - Utilities Policy

JF - Utilities Policy

SN - 0957-1787

M1 - 101390

ER -

ID: 325716892