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

    Cite this

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    title = "Efficiency gains in Danish district heating. Is there anything to learn from benchmarking?",
    abstract = "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.{\circledC} 2004 Elsevier Ltd.All rights reserved.",
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    author = "Jesper Munksgaard and Lise-Lotte Pade and P. Fristrup",
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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 journalJournal articleResearchpeer-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 -