Abstract
incentives for increasing efficiency in heat production.One way is to implement benchmark regulation. The aim of this paper is
twofold: (1) To investigate the potential for increasing productivity in Danish district heating production and (2) to examine whether benchmarking has a role to play.Using data envelopment analysis our analyses show that by assuming variable returns to scale a potential exists to reduce production costs by 5–27% depending on the portfolio of inputs and outputs included in the model. Further, our analyses show that the ranking of producers is much dependent on the combination of inputs and outputs included in the model.Therefore, great care should be taken when deciding on the appropriate model to be used when implementing benchmarking as a regulatory mean.
© 2004 Elsevier Ltd.All rights reserved.
| Original language | English |
|---|---|
| Journal | Energy Policy |
| Volume | 33 |
| Pages (from-to) | 1986-1997 |
| ISSN | 0301-4215 |
| DOIs | |
| Publication status | Published - 2005 |
Cite this
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Efficiency gains in Danish district heating. Is there anything to learn from benchmarking? / Munksgaard, Jesper; Pade, Lise-Lotte; Fristrup, P.
In: Energy Policy, Vol. 33, 2005, p. 1986-1997.Research output: Contribution to journal › Journal article › Research › peer-review
TY - JOUR
T1 - Efficiency gains in Danish district heating. Is there anything to learn from benchmarking?
AU - Munksgaard, Jesper
AU - Pade, Lise-Lotte
AU - Fristrup, P.
PY - 2005
Y1 - 2005
N2 - Facing a market structure of independent heating systems and cost-of-service regulation the regulator considers ways to createincentives for increasing efficiency in heat production.One way is to implement benchmark regulation. The aim of this paper istwofold: (1) To investigate the potential for increasing productivity in Danish district heating production and (2) to examine whether benchmarking has a role to play.Using data envelopment analysis our analyses show that by assuming variable returns to scale a potential exists to reduce production costs by 5–27% depending on the portfolio of inputs and outputs included in the model. Further, our analyses show that the ranking of producers is much dependent on the combination of inputs and outputs included in the model.Therefore, great care should be taken when deciding on the appropriate model to be used when implementing benchmarking as a regulatory mean.© 2004 Elsevier Ltd.All rights reserved.
AB - Facing a market structure of independent heating systems and cost-of-service regulation the regulator considers ways to createincentives for increasing efficiency in heat production.One way is to implement benchmark regulation. The aim of this paper istwofold: (1) To investigate the potential for increasing productivity in Danish district heating production and (2) to examine whether benchmarking has a role to play.Using data envelopment analysis our analyses show that by assuming variable returns to scale a potential exists to reduce production costs by 5–27% depending on the portfolio of inputs and outputs included in the model. Further, our analyses show that the ranking of producers is much dependent on the combination of inputs and outputs included in the model.Therefore, great care should be taken when deciding on the appropriate model to be used when implementing benchmarking as a regulatory mean.© 2004 Elsevier Ltd.All rights reserved.
KW - 3-E system
U2 - 10.1016/j.enpol.2004.03.019
DO - 10.1016/j.enpol.2004.03.019
M3 - Journal article
VL - 33
SP - 1986
EP - 1997
JO - Energy Policy
JF - Energy Policy
SN - 0301-4215
ER -