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Joint Costs in Electricity and Natural Gas Distribution Infrastructures: The Role of Urban Factors

1
Department of City and Regional Planning, Middle East Technical University, 06800 Ankara, Turkey
2
City and Regional Section, Knowlton School of Architecture, The Ohio State University, Columbus, OH 43210, USA
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Author to whom correspondence should be addressed.
Urban Sci. 2018, 2(2), 35; https://doi.org/10.3390/urbansci2020035
Received: 23 February 2018 / Revised: 7 April 2018 / Accepted: 13 April 2018 / Published: 16 April 2018
This paper analyzes the joint cost structure of electricity and natural gas distribution investments. Assessing the joint costs is critical for urban development and public policy regarding competition at the local level. The paper accounts for the urban and geographic factors at the local level, while the previous literature primarily used company-level data with a few or no site-specific variables in joint cost analyses. An empirical analysis of the multi-utility capital costs suggests that the local urban and geographic conditions affect such costs, with economies of scope present in electricity and natural gas both in terms of total costs and underground investment costs. Hence, the joint service provision makes economic and environmental sense for urban policy makers. View Full-Text
Keywords: infrastructure cost modeling; joint energy distribution; economies of scope; electricity distribution; natural gas distribution infrastructure cost modeling; joint energy distribution; economies of scope; electricity distribution; natural gas distribution
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Senyel, M.A.; Guldmann, J.-M. Joint Costs in Electricity and Natural Gas Distribution Infrastructures: The Role of Urban Factors. Urban Sci. 2018, 2, 35.

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