Capital cost efficiency of US natural gas pipelines and environmental factors influence: A two stage DEA approach

Congreso; Arnoldshain Seminar XVII; 2022

The objective of this paper is to evaluate the relative performance in terms of capital cost gas pipelines projects undertook in United States between years 2003 and 2015 and to acknowledge the effect of differences in the ground where pipelines are buried such as land use, wetlands and crossings. It is performed through Two Stage DEA. The analysis in this article provides through a widespread approved methodology and representative benchmarking figures that helps to evaluate the effect of environmental factors in capital costs. It is a useful tool for regulators who face asymmetric information problems when these important investments are done.