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Electricity Sector Performance: A Panel Threshold Analysis

Abstract:
This paper introduces a panel threshold model to empirically estimate the main drivers of electricity performance. The empirical analysis is based on a panel data set including 30 OECD countries over the period 1975-2013. We argue that effective regulatory reforms have positive interaction with the electricity generated leading to a higher capacity utilization and an increase in the level of labor productivity of the sector. The threshold analysis suggests that for already economically liberalised countries the level of economic freedom does not affect electricity generation and subsequently the level of electricity performance. Finally, the results do not drastically change when the Renewable Energy Sources (RES) are taken into account.

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Energy Specializations: Electricity – Distributed Generation; Electricity – Markets and Prices ; Electricity – Generation Technologies; Energy and the Economy – Energy as a Productive Input; Energy Modeling – Energy Data, Modeling, and Policy Analysis; Energy Modeling – Energy Data, Modeling, and Policy Analysis

JEL Codes: Q41: Energy: Demand and Supply; Prices, Q42: Alternative Energy Sources

Keywords: Electricity, OECD, Performance, Structural reforms, Threshold analysis

DOI: 10.5547/01956574.38.3.mpol

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Published in Volume 38, Number 3 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.

 

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