Wind Of Change: Small-Scale Electricity Production And Distribution-Grid Efficiency In Sweden?

In this paper, we measure the technical efficiency for local electricity distribution firms in Sweden, and in particular how small and micro-scale generation affects efficiency scores. Using a two-stage data envelopment analysis to model the technical efficiency and a double bootstrap approach to estimate the determinants of inefficiencies, we show that firms are heterogeneous in terms of inefficiency, but that a large share of small and micro-scale generation is not associated with more inefficient operations.