Efficiency gains in Danish district heating. Is there anything to learn from benchmarking?

Jesper Munksgaard, Lise-Lotte Pade, P. Fristrup

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    Facing a market structure of independent heating systems and cost-of-service regulation the regulator considers ways to create
    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 languageEnglish
    JournalEnergy Policy
    Volume33
    Pages (from-to)1986-1997
    ISSN0301-4215
    DOIs
    Publication statusPublished - 2005

    Fingerprint Dive into the research topics of 'Efficiency gains in Danish district heating. Is there anything to learn from benchmarking?'. Together they form a unique fingerprint.

    Cite this