A test of vertical economies for non-vertically integrated firms: The case of rural electric cooperatives
This paper seeks to evaluate unrealized economies of vertical integration for rural electric cooperatives. Given the well-established network economies that are inherent in the generation, transmission, and distribution of electricity, the coops long-standing choice of market structure is questionable (especially if their strategy is welfare maximization). Organized as either generation-and-transmission or distribution-only, the traditional measures of vertical economies will not work. Thus, I have devised an alternative method by which to measure such economies and find that, on average, cost savings in excess of 39% could have been realized had the coops adopted a vertically integrated structure.
Year of publication: |
2008
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Authors: | Greer, Monica L. |
Published in: |
Energy Economics. - Elsevier, ISSN 0140-9883. - Vol. 30.2008, 3, p. 679-687
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Publisher: |
Elsevier |
Saved in:
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