IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v30y2008i6p3118-3127.html
   My bibliography  Save this article

Technical efficiency of thermoelectric power plants

Author

Listed:
  • Barros, Carlos Pestana
  • Peypoch, Nicolas

Abstract

This paper analyses the technical efficiency of Portuguese thermoelectric power generating plants with a two-stage procedure. In the first stage, the plants' relative technical efficiency is estimated with DEA (data envelopment analysis) to establish which plants perform most efficiently. These plants could serve as peers to help improve performance of the least efficient plants. The paper ranks these plants according to their relative efficiency for the period 1996-2004. In a second stage, the Simar and Wilson [Simar, L., Wilson, P.W., 2007. Estimation and inference in two-stage, semi-parametric models of production processes. Journal of Econometrics 136, 1-34] bootstrapped procedure is adopted to estimate the efficiency drivers. Economic implications arising from the study are considered.

Suggested Citation

  • Barros, Carlos Pestana & Peypoch, Nicolas, 2008. "Technical efficiency of thermoelectric power plants," Energy Economics, Elsevier, vol. 30(6), pages 3118-3127, November.
    • Handle: RePEc:eee:eneeco:v:30:y:2008:i:6:p:3118-3127
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140-9883(08)00063-7
    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. Léopold Simar & Paul Wilson, 2000. "Statistical Inference in Nonparametric Frontier Models: The State of the Art," Journal of Productivity Analysis, Springer, vol. 13(1), pages 49-78, January.
    2. Jamasb, Tooraj & Nillesen, Paul & Pollitt, Michael, 2004. "Strategic behaviour under regulatory benchmarking," Energy Economics, Elsevier, vol. 26(5), pages 825-843, September.
    3. Golany, B & Roll, Y, 1989. "An application procedure for DEA," Omega, Elsevier, vol. 17(3), pages 237-250.
    4. Barros, Carlos Pestana, 2008. "Efficiency analysis of hydroelectric generating plants: A case study for Portugal," Energy Economics, Elsevier, vol. 30(1), pages 59-75, January.
    5. Mei Xue & Patrick T. Harker, 1999. "Extensions of Modified DEA," Center for Financial Institutions Working Papers 99-07, Wharton School Center for Financial Institutions, University of Pennsylvania.
    6. Demsetz, Harold, 1973. "Industry Structure, Market Rivalry, and Public Policy," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 1-9, April.
    7. Paul Nillesen & Michael Pollitt, 2007. "The 2001-3 electricity distribution price control review in the Netherlands: regulatory process and consumer welfare," Journal of Regulatory Economics, Springer, vol. 31(3), pages 261-287, June.
    8. Chambers, Robert G., 1996. "A New Look at Exact Input, Output, Productivity, and Technical Change Measurement," Working Papers 197840, University of Maryland, Department of Agricultural and Resource Economics.
    9. Charnes, A. & Cooper, W. W. & Huang, Z. M. & Sun, D. B., 1990. "Polyhedral Cone-Ratio DEA Models with an illustrative application to large commercial banks," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 73-91.
    10. Kneip, Alois & Park, Byeong U. & Simar, Léopold, 1998. "A Note On The Convergence Of Nonparametric Dea Estimators For Production Efficiency Scores," Econometric Theory, Cambridge University Press, vol. 14(6), pages 783-793, December.
    11. Kumbhakar, Subal C, 1987. "Production Frontiers and Panel Data: An Application to U.S. Class 1 Railroads," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(2), pages 249-255, April.
    12. Boussofiane, A. & Dyson, R. G. & Thanassoulis, E., 1991. "Applied data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 52(1), pages 1-15, May.
    13. W. Briec, 1997. "A Graph-Type Extension of Farrell Technical Efficiency Measure," Journal of Productivity Analysis, Springer, vol. 8(1), pages 95-110, March.
    14. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    15. Russell G. Thompson & F. D. Singleton & Robert M. Thrall & Barton A. Smith, 1986. "Comparative Site Evaluations for Locating a High-Energy Physics Lab in Texas," Interfaces, INFORMS, vol. 16(6), pages 35-49, December.
    16. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    17. Andrew N. Kleit & Dek Terrell, 2001. "Measuring Potential Efficiency Gains From Deregulation Of Electricity Generation: A Bayesian Approach," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 523-530, August.
    18. Simar, Leopold & Wilson, Paul W., 1999. "Estimating and bootstrapping Malmquist indices," European Journal of Operational Research, Elsevier, vol. 115(3), pages 459-471, June.
    19. Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
    20. Dominique Deprins & Léopold Simar & Henry Tulkens, 2006. "Measuring Labor-Efficiency in Post Offices," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 285-309, Springer.
    21. Robert Russell, R., 1990. "Continuity of measures of technical efficiency," Journal of Economic Theory, Elsevier, vol. 51(2), pages 255-267, August.
    22. Nakano, Makiko & Managi, Shunsuke, 2008. "Regulatory reforms and productivity: An empirical analysis of the Japanese electricity industry," Energy Policy, Elsevier, vol. 36(1), pages 201-209, January.
    23. Raymond L. Raab & Richard W. Lichty, 2002. "Identifying Subareas That Comprise A Greater Metropolitan Area: The Criterion of County Relative Efficiency," Journal of Regional Science, Wiley Blackwell, vol. 42(3), pages 579-594, August.
    24. Barros, Carlos P. & Peypoch, Nicolas, 2007. "The determinants of cost efficiency of hydroelectric generating plants: A random frontier approach," Energy Policy, Elsevier, vol. 35(9), pages 4463-4470, September.
    25. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    26. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
    27. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    28. Thompson, Russell G. & Langemeier, Larry N. & Lee, Chih-Tah & Lee, Euntaik & Thrall, Robert M., 1990. "The role of multiplier bounds in efficiency analysis with application to Kansas farming," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 93-108.
    29. Daouia, Abdelaati & Simar, Leopold, 2007. "Nonparametric efficiency analysis: A multivariate conditional quantile approach," Journal of Econometrics, Elsevier, vol. 140(2), pages 375-400, October.
    30. Charnes, A. & Cooper, W. W. & Seiford, L. & Stutz, J., 1982. "A multiplicative model for efficiency analysis," Socio-Economic Planning Sciences, Elsevier, vol. 16(5), pages 223-224.
    31. Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
    32. Jamasb, Tooraj & Pollitt, Michael, 2003. "International benchmarking and regulation: an application to European electricity distribution utilities," Energy Policy, Elsevier, vol. 31(15), pages 1609-1622, December.
    Full references (including those not matched with items on IDEAS)

    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. Carlos Pestana Barros & Maria Teresa Medeiros Garcia, 2006. "Performance Evaluation of Pension Funds Management Companies with Data Envelopment Analysis," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 9(2), pages 165-188, September.
    2. Carlos Barros & Pedro Garcia-del-Barrio, 2011. "Productivity drivers and market dynamics in the Spanish first division football league," Journal of Productivity Analysis, Springer, vol. 35(1), pages 5-13, February.
    3. Sebastian Kohl & Jan Schoenfelder & Andreas Fügener & Jens O. Brunner, 2019. "The use of Data Envelopment Analysis (DEA) in healthcare with a focus on hospitals," Health Care Management Science, Springer, vol. 22(2), pages 245-286, June.
    4. Rafael Benítez & Vicente Coll-Serrano & Vicente J. Bolós, 2021. "deaR-Shiny: An Interactive Web App for Data Envelopment Analysis," Sustainability, MDPI, vol. 13(12), pages 1-19, June.
    5. Perrigot, Rozenn & Barros, Carlos Pestana, 2008. "Technical efficiency of French retailers," Journal of Retailing and Consumer Services, Elsevier, vol. 15(4), pages 296-305.
    6. Luis R. Murillo‐Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, February.
    7. Barros, Carlos Pestana & Peypoch, Nicolas, 2009. "An evaluation of European airlines' operational performance," International Journal of Production Economics, Elsevier, vol. 122(2), pages 525-533, December.
    8. Sickles, Robin C. & Song, Wonho & Zelenyuk, Valentin, 2018. "Econometric Analysis of Productivity: Theory and Implementation in R," Working Papers 18-008, Rice University, Department of Economics.
    9. Barros, Carlos Pestana, 2008. "Efficiency analysis of hydroelectric generating plants: A case study for Portugal," Energy Economics, Elsevier, vol. 30(1), pages 59-75, January.
    10. Carlos Pestana Barros & Stephanie Leach, 2006. "Performance evaluation of the English Premier Football League with data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 38(12), pages 1449-1458.
    11. Briec, Walter & Peypoch, Nicolas & Ratsimbanierana, Hermann, 2011. "Productivity growth and biased technological change in hydroelectric dams," Energy Economics, Elsevier, vol. 33(5), pages 853-858, September.
    12. Adler, Nicole & Friedman, Lea & Sinuany-Stern, Zilla, 2002. "Review of ranking methods in the data envelopment analysis context," European Journal of Operational Research, Elsevier, vol. 140(2), pages 249-265, July.
    13. Liu, C.H. & Lin, Sue J. & Lewis, Charles, 2010. "Evaluation of thermal power plant operational performance in Taiwan by data envelopment analysis," Energy Policy, Elsevier, vol. 38(2), pages 1049-1058, February.
    14. Boutheina Bannour & Asma Sghaier & Mohammad Nurunnabi, 2020. "How to Choose a Nonparametric Frontier Model? Technical Efficiency of Turkish Banks Assessing Global," Global Business Review, International Management Institute, vol. 21(2), pages 348-364, April.
    15. C. Lovell & Shawna Grosskopf & Eduardo Ley & Jesús Pastor & Diego Prior & Philippe Eeckaut, 1994. "Linear programming approaches to the measurement and analysis of productive efficiency," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 2(2), pages 175-248, December.
    16. Jesus Pastor & C. Lovell & Juan Aparicio, 2012. "Families of linear efficiency programs based on Debreu’s loss function," Journal of Productivity Analysis, Springer, vol. 38(2), pages 109-120, October.
    17. Carlos Barros & Hercules Haralambides & Mohamed Hussain & Nicolas Perpoch, 2011. "Seaport Efficiency and Productivity Growth," Chapters, in: Kevin Cullinane (ed.), International Handbook of Maritime Economics, chapter 17, Edward Elgar Publishing.
    18. Olesen, Ole B. & Petersen, Niels Christian, 2016. "Stochastic Data Envelopment Analysis—A review," European Journal of Operational Research, Elsevier, vol. 251(1), pages 2-21.
    19. Valentin Zelenyuk, 2019. "Data Envelopment Analysis and Business Analytics: The Big Data Challenges and Some Solutions," CEPA Working Papers Series WP072019, School of Economics, University of Queensland, Australia.
    20. Örkcü, H. Hasan & Balıkçı, Cemal & Dogan, Mustafa Isa & Genç, Aşır, 2016. "An evaluation of the operational efficiency of turkish airports using data envelopment analysis and the Malmquist productivity index: 2009–2014 case," Transport Policy, Elsevier, vol. 48(C), pages 92-104.

    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:eneeco:v:30:y:2008:i:6:p:3118-3127. 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/eneco .

    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.