Quotation Gugler, Klaus and Liebensteiner, Mario and Schmitt, Stephan. 2015. Vertical Disintegration in the European Electricity Sector: Empirical Evidence on Lost Synergies. Workshop on Corporate Governance in Network Industries (CGNI), Wien, Österreich, 29.10.


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Abstract

The EU has been promoting unbundling of the transmission grid from other stages of the electricity supply chain with the aim of fostering competition in the upstream stage of electricity generation. At present, ownership unbundling is the predominant form of unbundling in Europe. From a policy perspective, a successful unbundling regime would require that the benefits of increased competition in power generation would at least offset the associated efficiency losses from vertical divestiture. Since evidence on this topic is scarce, this study helps fill this void by empirically estimating the magnitude of economies of vertical integration (EVI) between electricity generation and transmission based on a quadratic cost function. For this purpose we employ unique firm-level panel data of European electricity utilities. Our results confirm the presence of substantial EVI.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Vertical Disintegration in the European Electricity Sector: Empirical Evidence on Lost Synergies
Event Workshop on Corporate Governance in Network Industries (CGNI)
Year 2015
Date 29.10.
Country Austria
Location Wien

Associations

People
Gugler, Klaus (Details)
Liebensteiner, Mario (Former researcher)
External
Schmitt, Stephan (WIK-Consult, Germany)
Organization
Institute for Quantitative Economics IN (Details)
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