2002 Fiscal Year Final Research Report Summary
Empirical Studies on Cost Structure, Regulation and Privatization in Public Utility Industries
| Project/Area Number |
12630055
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
経済政策(含経済事情)
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| Research Institution | Kobe University |
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Principal Investigator |
MIZUTANI Fumitoshi Graduate School of Business Administration, Professor, 経営学研究科, 教授 (60263365)
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| Co-Investigator(Kenkyū-buntansha) |
SHOJI Kenichi Graduate School of Business Administration, Professor, 経営学研究科, 教授 (70127372)
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| Project Period (FY) |
2000 – 2002
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| Keywords | Privatization / Regulation Policy / Public Utility Industries / Railways / Water Supply Industry / Postal Services / Competition Policy / Network Industry |
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| Research Abstract |
The main purpose of this study is to evaluate the possibility of the introduction of competition policy by analyzing the cost structure of public utility industries and to assess how performance measures such as productive efficiency might be improved by the privatization of the public utility industries. We will present policy implications garnered from these analyses. The four main industries we analyzed were the water supply industry, the railway industry, the postal service industry and local public services. We chose these industries because there are strong expectations that they will be reformed (e.g. the water supply industry), some have already been reformed (e.g. the railway industry), and there is for many of them the possibility that they will be privatized or that their management style will be changed to resemble more closely private-style management.
We collected data regarding public utility industries, which we analyzed by using econometric techniques and from which we obtained information relevant to policy formation. For example, optimal size in terms of providing the minimum average costs is a population of about 760 thousand. Second, we found a competition effect on the private sector's efficiency improvement in parcel delivery service but could not discern a clear effect on productivity improvement and cost reduction for the Post Office. Third, there are no cost advantages in maintenance activities for the operation-infrastructure separation scheme in the railway industry. Last, privatization certainly leads to the cost reduction effect.
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