Econometric analysis of steam-electric power production technology under a flexible functional specification and duality

Thesis/Dissertation · Wed Jan 01 04:00:00 EST 1986

OSTI ID:5685835

Okunade, A A

Neoclassical duality results allow the modeling of steam electricity production technology with a Diewert-flexible Translog cost specification, appropriately constrained for the regularity conditions. The model was fitted to 1981 cross-sectional sample of regulated investor-owned electric utilities operating in the East North Central US. The neoclassical cost function and factor cost share equations are jointly estimated for efficiency. Characteristics of the technology (including firm-level scale economies) are then obtained from maximum likelihood coefficients of Zellner's joint GLS Seemingly Unrelated Regressions. The estimated minimum cost function can be viewed as an m-dimensional response surface described by statically significant arguments, is well behaved, and corresponds to that of a nice neoclassical technology. Overall study findings provide specific confirmation for possible significant regional differences in the production structure of steam electricity generation within the US. The study furnishes tentative evidence that a broad national industrial policy for this industry will be misplaced unless proper adjustments are made for regional asymmetries in production cost structures.

• Research Organization: Arkansas Univ., Fayetteville (USA)
• OSTI ID: 5685835
• Country of Publication: United States
• Language: English

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COST
ECONOMIC ANALYSIS
ECONOMICS
FOSSIL-FUEL POWER PLANTS
GOVERNMENT POLICIES
MACHINERY
POWER GENERATION
POWER PLANTS
REGIONAL ANALYSIS
STEAM TURBINES
THERMAL POWER PLANTS
TURBINES
TURBOMACHINERY