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dc.contributor.authorMydland, Ørjan
dc.contributor.authorKumbhakar, Subal Chandra
dc.contributor.authorLien, Gudbrand
dc.contributor.authorAmundsveen, Roar
dc.contributor.authorKvile, Hilde Marit
dc.identifier.citationEconomic Modelling. 2019en_US
dc.description© 2019 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND licenseen_US
dc.description.abstractAn important issue for multi-product firms to consider is economies of scope, i.e., whether there is any benefit from producing two or more products, or whether specializing in producing only one product would be less costly. We examined the economies of scope for Norwegian electricity companies because policy makers have decided to force companies that both generates and distributes electricity to split their operations into two companies, one engaged in generation only and the other in distribution only. We set out to test the validity of the policy makers decision on unbundling generation and distribution. Using data from Norwegian electricity companies for the period 2004–2014, we found evidence of economies of scope, meaning that policy makers’ insistence on separating generation and distribution companies will have increased costs. We also found evidence of economies of scale, meaning that there are cost savings in expanding outputs. Our findings provide important information to consider in future policy decisions in the Norwegian electricity industry, probably with implications for other countriesen_US
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 Internasjonal*
dc.subjectcost functionen_US
dc.subjecteconomies of scopeen_US
dc.subjecteconomies of scaleen_US
dc.subjectflexible technologyen_US
dc.titleEconomies of scope and scale in the Norwegian electricity industryen_US
dc.typePeer revieweden_US
dc.typeJournal articleen_US
dc.source.journalEconomic Modellingen_US
cristin.unitnameInstitutt for økonomifag

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Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal