earticle

영어

In 2001 April, first of all, Korean power generating sector was separated from Korea Electric Power Corporation (KEPCO) by the plan of reform in electricity industry. Transmission and distribution(T&D) electric sector plan to be separated and privatized by this plan. However previous studies haven’t try to measure economies of scale of Korean T&D electric sector. This study uses not only translog cost function that generally used for estimating economies of scale but also fourier flexible functional form which can potentially approximate any function well over the entire range of data. The results suggest that Korean T&D electric sector is still in the range of economies of scale.