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PublicationArticle (with peer review)

Norm-based feedback on household waste: Large-scale field experiments in two Swedish municipalities

Abstract

We conduct two large-scale randomized controlled trials to produce the first evidence that Home Energy Report-type norm feedback letters can be used to reduce household waste. We explore several feedback variants, including a novel short-run dynamic norm that emphasizes ongoing changes in waste behavior. Waste reductions are on the order of 7%–12% for all treatments, substantially larger than usually found in the energy or water domains. Effects are mostly driven by increased recycling of packaging and remain largely intact a year after the intervention ended. Feedback is highly cost effective compared to alternative non-price waste policies. However, net social benefits depend on household preferences for receiving feedback, which we elicit in a valuation survey, and whether existing waste fees internalize the marginal social cost of waste.

Ek, C. & Söderberg, M. (2024). Norm-based feedback on household waste: Large-scale field experiments in two Swedish municipalities. Journal of Public Economics 238.

Details

Author: Ek, C. & Söderberg, M.
Publication year: 2024
Published in: Journal of Public Economics

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Professor
Magnus Söderberg
magnus.soderberg@ratio.se

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A penalization approach for estimating inefficiency in stochastic frontier panel models

Tchatoka, F. D., Söderberg, M., Hakeem, M. A.

Publication year

2025

Published in

University of Adelaide, School of Economics and Public Policy Working Paper.

Abstract

Efficiency analysis is essential for evaluating the performance of entities that deliver essential or standardized services. The estimator proposed by Jondrow et al. (1982) is widely used in this context, but it has been criticized for several shortcomings: it tends to bias inefficiency estimates toward the mean, distorts the distribution, and misrepresents the conditional distribution of inefficiency—especially in cross-sectional data.

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In response, this paper introduces a penalized mode estimator for unit inefficiency in panel data. The estimator accounts for heteroskedasticity in both inefficiency and idiosyncratic errors. A closed-form expression is derived, and Monte Carlo simulations demonstrate its superior performance compared to existing methods. An empirical application using data from electricity providers in Australia, Canada, and New Zealand highlights the practical advantages of the proposed approach.

Article (with peer review)

Scale properties and efficient network structures in the Swedish electricity distribution market

Söderberg, M., Vesterberg, M.

Publication year

2025

Published in

Journal of Regulatory Economics

Abstract

This paper examines the Swedish electricity distribution sector to highlight three key findings. First, we identify significant economies of scale among electricity distribution firms, indicating that larger firms operate more efficiently. Second, we explore alternative market structures and demonstrate that these can substantially reduce the aggregated costs of electricity distribution. Third, we use novel survey data to show that firms perceive the economic incentives for mergers to be insufficient. These findings suggest that policymakers should consider creating a regulatory environment that encourages consolidation and enhance efficiency in the sector.

Article (with peer review)

Are CEOs judged on how cost efficient their firms are?

Månsson, K., Qasim, M., Söderberg, M.

Publication year

2025

Published in

Energy Economics

Abstract

This paper investigates whether executive boards consider firm-specific inefficiencies when they change CEOs in the Swedish electricity distribution sector. Firm-level inefficiencies are calculated using data from all Swedish electricity distributors from 2001 to 2022 and a data envelopment analysis (DEA) approach.

DEA has advantages over standard financial key performance indicators since it controls for heterogeneity in inputs and outputs. It is also frequently employed by energy regulators to calculate relative cost inefficiencies.

Our baseline approach uses a multilevel model and investigates the relationship between inefficiency and CEO between-effects. This analysis shows that 9–15 % of the variation in inefficiency can be attributed to the CEO effect.

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