Measuring economies of horizontal and vertical integration in the US electric power industry:how costly is unbundling?

This research employs econometric analysis on a cross section of American electricity companies in order to study the cost implications associated with unbundling the operations of integrated companies into vertically and/or horizontally separated companies. Focusing on the representative sample average firm, we find that complete horizontal and vertical disintegration resulting in the creation of separate nuclear, conventional, and hydro electric generation companies as well as a separate firm distributing power to final consumers, results in a statistically significant 13.5 percent increase in costs. Maintaining a horizontally integrated generator producing nuclear, conventional, and hydro electric generation while imposing vertical separation by creating a stand alone distribution company, results in a lower but still substantial and statistically significant cost penalty amounting to an 8.1 % increase in costs relative to a fully integrated structure. As these results imply that a vertically separated but horizontally integrated generation firm would need to reduce the costs of generation by 11% just to recoup the cost increases associated with vertical separation, even the costs associated with just vertical unbundling are quite substantial. Our paper is also the first academic paper we are aware of that systematically considers the impact of generation mix on vertical, horizontal, and overall scope economies. As a result, we are able to demonstrate that the estimated cost of unbundling in the electricity sector is substantially influenced by generation mix. Thus, for example, we find evidence of strong vertical integration economies between nuclear and conventional generation, but little evidence for vertical integration benefits between hydro generation and the distribution of power. In contrast, we find strong evidence suggesting the presence of substantial horizontal integration economies associated with the joint production of hydro generation with nuclear and/or conventional fossil fuel generation. These results are significant because they indicate that the cost of unbundling the electricity sector will differ substantially in different systems, meaning that a blanket regulatory policy with regard to the appropriateness of vertical and horizontal unbundling is likely to be inappropriate.

FDI horizontal and vertical effects on local firm technical efficiency

Differencing from previous studies on foreign direct investment (FDI) spillovers to domestic enterprises which mainly focus on productivity, in this paper we take a different perspective by analysing the impacts of FDI to technical efficiency of domestic firms. The paper goes beyond the current literature to shed some light on the spillover effects of FDI to technical efficiency of small and medium enterprises in a developing country. By exploiting a firm-level panel dataset and using SFA models following Battese and Coelli (1995), the paper is able to analyse horizontal spillovers through imitation and competition and labour mobility as well as vertical spillovers through backward and forward linkages on technical efficiency. The paper contributes to the understanding of potential effects on foreign invested enterprises on domestic economy in general and local enterprises performance in particular. Thus it importantly assists policy making by the government of developing countries, where FDI is believed to create technical spillovers on domestic enterprises.

Horizontal deflection of single particle in a paramagnetic fluid

This paper describes the horizontal deflection behaviour of a single particle in paramagnetic fluids under a high-gradient superconducting magnetic field. A glass box was designed to carry out experiments and test assumptions. It was found that the particles were deflected away from the magnet bore centre and particles with different density and/or susceptibility settled at a certain position on the container floor due to the combined forces of gravity and magneto-Archimedes as well as lateral buoyant (displacement) force. Matlab was chosen to simulate the movement of the particle in the magnetic fluid, the simulation results were in good accordance with experimental data. The results presented here, though, are still very much in their infancy, which could potentially form the basis of a new approach to separating materials based on a combination of density and susceptibility. Graphical abstract: [Figure not available: see fulltext.] © 2014 EDP Sciences, SIF, Springer-Verlag Berlin Heidelberg.

Particle separation by horizontal deflection in paramagnetic fluid

This paper describes the horizontal deflection behaviour of the streams of particles in paramagnetic fluids under a high-gradient superconducting magnetic field, which is the continued work on the exploration of particle magneto-Archimedes levitation. Based on the previous work on the horizontal deflection of a single particle, a glass box and collector had been designed to observe the movement of particle group in paramagnetic fluids. To get the exact separation efficiency, the method of "sink-float" involved the high density fluid polytungstate (dense medium separation) and MLA (Mineral Liberation Analyser) was performed. It was found that the particles were deflected and settled at certain positions on the container floor due to the combined forces of gravity and magneto-Archimedes forces as well as a lateral buoyancy (displacement) force. Mineral particles with different densities and susceptibilities could be deflected to different positions, thus producing groups of similar types of particles. The work described here, although in its infancy, could form the basis of new approach of separating particles based on a combination of susceptibility and density. © 2014 Elsevier B.V.

On the role of surface roughness in the aerodynamic performance and energy conversion of horizontal wind turbine blades:a review

Summary: Renewable energy is one of the main pillars of sustainable development, especially in developing economies. Increasing energy demand and the limitation of fossil fuel reserves make the use of renewable energy essential for sustainable development. Wind energy is considered to be one of the most important resources of renewable energy. In North African countries, such as Egypt, wind energy has an enormous potential; however, it faces quite a number of technical challenges related to the performance of wind turbines in the Saharan environment. Seasonal sand storms affect the performance of wind turbines in many ways, one of which is increasing the wind turbine aerodynamic resistance through the increase of blade surface roughness. The power loss because of blade surface deterioration is significant in wind turbines. The surface roughness of wind turbine blades deteriorates because of several environmental conditions such as ice or sand. This paper is the first review on the topic of surface roughness effects on the performance of horizontal-axis wind turbines. The review covers the numerical simulation and experimental studies as well as discussing the present research trends to develop a roadmap for better understanding and improvement of wind turbine performance in deleterious environments.