Headlines 2016

Film about effects of privatization

2016-12-19


Erik Lundin, researchers at IFN, has studied what transpired when parts of the Swedish electricity distribution sector was privatized. He explains in a short film how economies of scale resulted in: "The acquired networks increased labor efficiency by on average 18 percent, while no effect is found on the price." Since the purchases included several neighboring power grids, previously run by separate municipalities, the study shows that the entire effect can be explained by increased economies of scale, questioning the causal effect of privatization per se.

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