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DOES ELECTRICITY RESTRUCTURING WORK? EVIDENCE FROM THE U.S. NUCLEAR ENERGY INDUSTRY *
Author(s) -
ZHANG FAN
Publication year - 2007
Publication title -
the journal of industrial economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.93
H-Index - 77
eISSN - 1467-6451
pISSN - 0022-1821
DOI - 10.1111/j.1467-6451.2007.00317.x
Subject(s) - restructuring , endogeneity , electricity , work (physics) , nuclear power plant , sample (material) , electric power industry , economics , business , econometrics , finance , engineering , nuclear physics , chemistry , physics , electrical engineering , chromatography , mechanical engineering
This paper examines whether electricity restructuring improves the efficiency of U.S. nuclear power generation. Using a panel dataset consisting of the full sample of 73 investor‐owned nuclear plants in the United States from 1992 to 1998, I estimate the plant‐level cross‐sectional and longitudinal efficiency changes associated with restructuring. Special attention is given to the potential policy endogeneity bias and different modeling strategies are presented to cope with the issue. Overall, I find a striking positive relationship between restructuring and cost reduction, and increased plant utilization.