September 24 – Penn State University: Production Economics for Performance Evaluation of Engineered Systems: The Example of Finnish Electricity Distribution

Nimetön 7

The Finnish electricity market has a competitive energy generation market and a monopolistic transmission system. To regulate the local monopoly power of network operators, the government regulator uses frontier estimation methods. We describe the new regulatory system developed for the Finnish regulator, which is based on the method Stochastic semi-Nonparametric Envelopment of Data (StoNED) and utilizes panel data to detect the excessive costs from random noise.

Posted in Seminars.