Effects of Privatization on Price and Labor Efficiency: The Swedish Electricity Distribution Sector

Reprint No. 2020:18

Author(s): Erik LundinYear: 2020 Title: Energy Journal Volume (No.): 41 (2) Pages: 247–273
Online article (restrictions may apply)
Preliminary version

I examine the effects of privatization, in the form of acquisitions, in the Swedish electricity distribution sector. As the majority of the distribution networks have remained publicly owned, I use a synthetic control method to identify the effects on price and labor efficiency. In comparison to their synthetic counterparts, I find that the acquired networks increased labor efficiency by 8-18 percent depending on model specification, while no effect is found on price. Thus, the evidence suggests economically meaningful efficiency gains but that these are not fed through to consumer prices. Robustness results using a conventional difference-in-differences estimator largely confirms the results, although the estimated efficiency gains are either comparable to or less pronounced than their synthetic control counterparts.

Lundin, Erik (2020), "Effects of Privatization on Price and Labor Efficiency: The Swedish Electricity Distribution Sector". Energy Journal 41(2), 247–273.

Erik Lundin


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