The Guy at the Controls: Labor Quality and Power Plant Efficiency

Working Paper: NBER ID: w13215

Authors: James B. Bushnell; Catherine Wolfram

Abstract: This paper examines the impact of individual human operators on the fuel efficiency of power plants. Although electricity generation is a fuel and capital intensive enterprise, anecdotal evidence, interviews, and empirical analysis support the hypothesis that labor, particularly power plant operators, can have a non-trivial impact on the operating efficiency of the plant. We present evidence to demonstrate these effects and survey the policies and practices of electricity producing firms that either reduce or exacerbate fuel efficiency differences across individual plant operators.

Keywords: Labor Quality; Power Plant Efficiency; Electricity Generation; Human Resource Policies

JEL Codes: J24; L51; L94; M54


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Individual operators (C69)Fuel efficiency of power plants (L94)
Best operators (C69)Fuel efficiency of power plants (L94)
Operator-specific effects (C69)Fuel efficiency of power plants (L94)
Operator performance (C69)Fuel efficiency of power plants (L94)
Operator decisions (L23)Fuel efficiency of power plants (L94)

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