IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v37y2009i1p274-280.html
   My bibliography  Save this article

A deterministic approach for performance assessment and optimization of power distribution units in Iran

Author

Listed:
  • Azadeh, A.
  • Ghaderi, S.F.
  • Omrani, H.

Abstract

This paper presents a deterministic approach for performance assessment and optimization of power distribution units in Iran. The deterministic approach is composed of data envelopment analysis (DEA), principal component analysis (PCA) and correlation techniques. Seventeen electricity distribution units have been considered for the purpose of this study. Previous studies have generally used input-output DEA models for benchmarking and evaluation of electricity distribution units. However, this study considers an integrated deterministic DEA-PCA approach since the DEA model should be verified and validated by a robust multivariate methodology such as PCA. Moreover, the DEA models are verified and validated by PCA, Spearman and Kendall's Tau correlation techniques, while previous studies do not have the verification and validation features. Also, both input- and output-oriented DEA models are used for sensitivity analysis of the input and output variables. Finally, this is the first study to present an integrated deterministic approach for assessment and optimization of power distributions in Iran.

Suggested Citation

  • Azadeh, A. & Ghaderi, S.F. & Omrani, H., 2009. "A deterministic approach for performance assessment and optimization of power distribution units in Iran," Energy Policy, Elsevier, vol. 37(1), pages 274-280, January.
  • Handle: RePEc:eee:enepol:v:37:y:2009:i:1:p:274-280
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(08)00503-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Massimo Filippini, 1998. "Are Municipal Electricity Distribution Utilities Natural Monopolies?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 69(2), pages 157-174, June.
    2. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
    3. Edvardsen, Dag Fjeld & Forsund, Finn R., 2003. "International benchmarking of electricity distribution utilities," Resource and Energy Economics, Elsevier, vol. 25(4), pages 353-371, October.
    4. Antonio Estache & MartÌn A. Rossi & Christian A. Ruzzier, 2004. "The Case for International Coordination of Electricity Regulation: Evidence from the Measurement of Efficiency in South America," Journal of Regulatory Economics, Springer, vol. 25(3), pages 271-295, May.
    5. Adler, Nicole & Golany, Boaz, 2001. "Evaluation of deregulated airline networks using data envelopment analysis combined with principal component analysis with an application to Western Europe," European Journal of Operational Research, Elsevier, vol. 132(2), pages 260-273, July.
    6. C Serrano Cinca & C Mar Molinero, 2004. "Selecting DEA specifications and ranking units via PCA," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(5), pages 521-528, May.
    7. Giannakis, Dimitrios & Jamasb, Tooraj & Pollitt, Michael, 2005. "Benchmarking and incentive regulation of quality of service: an application to the UK electricity distribution networks," Energy Policy, Elsevier, vol. 33(17), pages 2256-2271, November.
    8. Goto, Mika & Tsutsui, Miki, 1998. "Comparison of Productive and Cost Efficiencies Among Japanese and US Electric Utilities," Omega, Elsevier, vol. 26(2), pages 177-194, April.
    9. Premachandra, I. M., 2001. "A note on DEA vs principal component analysis: An improvement to Joe Zhu's approach," European Journal of Operational Research, Elsevier, vol. 132(3), pages 553-560, August.
    10. Zhu, Joe, 1998. "Data envelopment analysis vs. principal component analysis: An illustrative study of economic performance of Chinese cities," European Journal of Operational Research, Elsevier, vol. 111(1), pages 50-61, November.
    11. Resende, Marcelo, 2002. "Relative efficiency measurement and prospects for yardstick competition in Brazilian electricity distribution," Energy Policy, Elsevier, vol. 30(8), pages 637-647, June.
    12. Burns, Philip & Weyman-Jones, Thomas G, 1996. "Cost Functions and Cost Efficiency in Electricity Distribution: A Stochastic Frontier Approach," Bulletin of Economic Research, Wiley Blackwell, vol. 48(1), pages 41-64, January.
    13. Jamasb, T. & Pollitt, M., 2000. "Benchmarking and regulation: international electricity experience," Utilities Policy, Elsevier, vol. 9(3), pages 107-130, September.
    14. Førsund, Finn R. & Kittelsen, Sverre A. C., 1998. "Productivity development of Norwegian electricity distribution utilities," Resource and Energy Economics, Elsevier, vol. 20(3), pages 207-224, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    2. Esfandyar Lashani & Kourosh Aryavash, 2018. "The optimistic–pessimistic revenue distribution in the presence of imprecise data," OPSEARCH, Springer;Operational Research Society of India, vol. 55(2), pages 288-301, June.
    3. Patyal, Vishal Singh & Kumar, Ravi & Lamba, Kuldeep & Maheshwari, Sunil, 2023. "Performance evaluation of Indian electricity distribution companies: An integrated DEA-IRP-TOPSIS approach," Energy Economics, Elsevier, vol. 124(C).
    4. S P Santos & C A F Amado & J R Rosado, 2011. "Formative evaluation of electricity distribution utilities using data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(7), pages 1298-1319, July.
    5. Ali Azadeh & Mansoureh Hasannia Kolaee & Vahid Salehi, 2016. "The impact of redundancy on resilience engineering in a petrochemical plant by data envelopment analysis," Journal of Risk and Reliability, , vol. 230(3), pages 285-296, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Azadeh, A. & Ghaderi, S.F. & Omrani, H. & Eivazy, H., 2009. "An integrated DEA-COLS-SFA algorithm for optimization and policy making of electricity distribution units," Energy Policy, Elsevier, vol. 37(7), pages 2605-2618, July.
    2. Sadjadi, S.J. & Omrani, H., 2008. "Data envelopment analysis with uncertain data: An application for Iranian electricity distribution companies," Energy Policy, Elsevier, vol. 36(11), pages 4247-4254, November.
    3. Dimitri Dimitropoulos and Adonis Yatchew, 2017. "Is Productivity Growth in Electricity Distribution Negative? An Empirical Analysis Using Ontario Data," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    4. San Cristóbal, José Ramón, 2011. "A multi criteria data envelopment analysis model to evaluate the efficiency of the Renewable Energy technologies," Renewable Energy, Elsevier, vol. 36(10), pages 2742-2746.
    5. Christian Growitsch & Tooraj Jamasb & Michael Pollitt, 2009. "Quality of service, efficiency and scale in network industries: an analysis of European electricity distribution," Applied Economics, Taylor & Francis Journals, vol. 41(20), pages 2555-2570.
    6. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
    7. S P Santos & C A F Amado & J R Rosado, 2011. "Formative evaluation of electricity distribution utilities using data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(7), pages 1298-1319, July.
    8. Mota, R.L., 2004. "‘Comparing Brazil and USA electricity performance; what was the impact of privatisation?’," Cambridge Working Papers in Economics 0423, Faculty of Economics, University of Cambridge.
    9. Christian von Hirschhausen & Astrid Cullmann & Andreas Kappeler, 2006. "Efficiency analysis of German electricity distribution utilities - non-parametric and parametric tests," Applied Economics, Taylor & Francis Journals, vol. 38(21), pages 2553-2566.
    10. C Serrano Cinca & C Mar Molinero, 2004. "Selecting DEA specifications and ranking units via PCA," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(5), pages 521-528, May.
    11. Jamasb, T. & Pollitt, M., 2000. "Benchmarking and regulation: international electricity experience," Utilities Policy, Elsevier, vol. 9(3), pages 107-130, September.
    12. Astrid Cullmann & Christian Hirschhausen, 2008. "Efficiency analysis of East European electricity distribution in transition: legacy of the past?," Journal of Productivity Analysis, Springer, vol. 29(2), pages 155-167, April.
    13. H. Örkcü & Mehmet Ünsal & Hasan Bal, 2015. "A modification of a mixed integer linear programming (MILP) model to avoid the computational complexity," Annals of Operations Research, Springer, vol. 235(1), pages 599-623, December.
    14. Petridis, Konstantinos & Ünsal, Mehmet Güray & Dey, Prasanta Kumar & Örkcü, H. Hasan, 2019. "A novel network data envelopment analysis model for performance measurement of Turkish electric distribution companies," Energy, Elsevier, vol. 174(C), pages 985-998.
    15. Ramos-Real, Francisco Javier & Tovar, Beatriz & Iootty, Mariana & de Almeida, Edmar Fagundes & Pinto Jr., Helder Queiroz, 2009. "The evolution and main determinants of productivity in Brazilian electricity distribution 1998-2005: An empirical analysis," Energy Economics, Elsevier, vol. 31(2), pages 298-305, March.
    16. Schober, Dominik & Weber, Christoph, 2015. "Refinancing under yardstick regulation with investment cycles: The case of long-lived electricity network assets," ZEW Discussion Papers 15-065, ZEW - Leibniz Centre for European Economic Research.
    17. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    18. Ogunrinde, Olawale & Shittu, Ekundayo, 2023. "Efficiency and productivity of renewable energy technologies: Evidence from U.S. investor-owned utilities across regional markets," Utilities Policy, Elsevier, vol. 82(C).
    19. Dominik Schober, 2013. "Refinancing under Yardstick Regulation with Investment Cycles–The Case of Long-Lived Electricity Network Assets," EWL Working Papers 1321, University of Duisburg-Essen, Chair for Management Science and Energy Economics, revised Jun 2013.
    20. Lampe, Hannes W. & Hilgers, Dennis, 2015. "Trajectories of efficiency measurement: A bibliometric analysis of DEA and SFA," European Journal of Operational Research, Elsevier, vol. 240(1), pages 1-21.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:37:y:2009:i:1:p:274-280. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.