IDEAS home Printed from https://ideas.repec.org/a/prg/jnleam/v2013y2013i3id206p62-73.html
   My bibliography  Save this article

International Experiences with Using TFP Benchmarking in Energy Industries Regulation

Author

Listed:
  • Ondřej Machek
  • Jiří Hnilica

Abstract

The TFP approach (TFP method) is one of the methods of performance-based regulation whose aim is to increase the efficiency of regulated companies. This article presents an overview of current international experience with the application of TFP benchmarking in the price regulation of energy industries. The TFP approach in regulated tariff setting has been used mainly in Anglo-Saxon countries. The method has been used mainly as an underlying method to price decisions. Further, we may state that TFP analysis is an area in which regulatory agencies often rely on external consulting companies, and that for a successful adopting of TFP methodology, a broader social consensus is needed. Data issues seem to be a general obstacle when implementing this method. The international experiences suggest that even a complex method of price regulation where TFP plays only an underlying role may be successful.

Suggested Citation

  • Ondřej Machek & Jiří Hnilica, 2013. "International Experiences with Using TFP Benchmarking in Energy Industries Regulation," Ekonomika a Management, Prague University of Economics and Business, vol. 2013(3), pages 62-73.
  • Handle: RePEc:prg:jnleam:v:2013:y:2013:i:3:id:206:p:62-73
    as

    Download full text from publisher

    File URL: http://www.vse.cz/eam/download.php?jnl=eam&pdf=206.pdf
    Download Restriction: free of charge

    File URL: http://www.vse.cz/eam/206
    Download Restriction: free of charge
    ---><---

    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. Eric van Damme, 2005. "Liberalizing the Dutch Electricity Market: 1998-2004," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 155-180.
    2. Machek Ondrej, 2011. "Regulatory Benchmarking In Central Europe: Current Practice And Possibilities Of Development For The Energy Sector," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 80-86, July.
    3. D. Mark Kennet & Noel Uri, 2001. "Measuring Productivity Change for Regulatory Purposes," Journal of Media Economics, Taylor & Francis Journals, vol. 14(2), pages 87-104.
    4. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
    5. Tim Coelli & Denis Lawrence (ed.), 2006. "Performance Measurement and Regulation of Network Utilities," Books, Edward Elgar Publishing, number 3801.
    6. Ondřej Machek & Jiří Hnilica, 2010. "Methods of network industries regulation," Ekonomika a Management, Prague University of Economics and Business, vol. 2010(3).
    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. Maziotis, Alexandros & Saal, David S. & Thanassoulis, Emmanuel, 2012. "Profit, Productivity and Price Performance Changes in The English and Welsh Water and Sewerage Companies," Climate Change and Sustainable Development 142949, Fondazione Eni Enrico Mattei (FEEM).
    2. Molinos-Senante, María & Maziotis, Alexandros & Sala-Garrido, Ramón, 2014. "The Luenberger productivity indicator in the water industry: An empirical analysis for England and Wales," Utilities Policy, Elsevier, vol. 30(C), pages 18-28.
    3. Maziotis, Alexandros & Saal, David S. & Thanassoulis, Emmanuel, 2013. "Profit, Productivity, Price and Quality Performance Changes in the English and Welsh Water and Sewerage Companies," Climate Change and Sustainable Development 146439, Fondazione Eni Enrico Mattei (FEEM).
    4. Barnett, William A. & Erwin Diewert, W. & Zellner, Arnold, 2011. "Introduction to measurement with theory," Journal of Econometrics, Elsevier, vol. 161(1), pages 1-5, March.
    5. Christian Growitsch & Tooraj Jamasb & Christine Müller & Matthias Wissner, 2016. "Social Cost Efficient Service Quality: Integrating Customer Valuation in Incentive Regulation—Evidence from the Case of Norway," International Series in Operations Research & Management Science, in: Joe Zhu (ed.), Data Envelopment Analysis, chapter 0, pages 71-91, Springer.
    6. Jan Kluge & Sarah Lappöhn & Kerstin Plank, 2023. "Predictors of TFP growth in European countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 109-140, February.
    7. Zaim, Osman & Uygurtürk Gazel, Tuğçe & Akkemik, K. Ali, 2017. "Measuring energy intensity in Japan: A new method," European Journal of Operational Research, Elsevier, vol. 258(2), pages 778-789.
    8. Zanella, Andreia & Camanho, Ana S. & Dias, Teresa G., 2015. "Undesirable outputs and weighting schemes in composite indicators based on data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 245(2), pages 517-530.
    9. Shuhua Zhang & Bingjun Li & Yingjie Yang, 2021. "Efficiency Analysis of Scientific and Technological Innovation in Grain Production Based on Improved Grey Incidence Analysis," Agriculture, MDPI, vol. 11(12), pages 1-21, December.
    10. Newbery, David M. & Greve, Thomas, 2017. "The strategic robustness of oligopoly electricity market models," Energy Economics, Elsevier, vol. 68(C), pages 124-132.
    11. Mairesse, Jacques & Mohnen, Pierre, 2001. "To Be Or Not To Be Innovative: An Exercise In Measurement," Research Memorandum 038, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    12. Wolfgang Keller, 2002. "Geographic Localization of International Technology Diffusion," American Economic Review, American Economic Association, vol. 92(1), pages 120-142, March.
    13. Aghayi, Nazila & Maleki, Bentolhoda, 2016. "Efficiency measurement of DMUs with undesirable outputs under uncertainty based on the directional distance function: Application on bank industry," Energy, Elsevier, vol. 112(C), pages 376-387.
    14. Henry van der Wiel & Harold Creusen & George van Leeuwen & Eugene Van der Pijll, 2012. "The Dutch Productivity Performance: Cross Your Border and Look Around," Chapters, in: Matilde Mas & Robert Stehrer (ed.), Industrial Productivity in Europe, chapter 14, Edward Elgar Publishing.
    15. Sourafel Girma & Holger Görg, 2022. "Productivity effects of processing and ordinary export market entry: A time‐varying treatments approach," Review of International Economics, Wiley Blackwell, vol. 30(3), pages 836-853, August.
    16. Krasachat, W., 2000. "Production Structure and Technical Change in Thai Agriculture, 1972-1994," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123688, Australian Agricultural and Resource Economics Society.
    17. Ito, Keiko, 2004. "Foreign ownership and plant productivity in the Thai automobile industry in 1996 and 1998: a conditional quantile analysis," Journal of Asian Economics, Elsevier, vol. 15(2), pages 321-353, April.
    18. Matthias Arnold, Jens & Javorcik, Beata S., 2009. "Gifted kids or pushy parents? Foreign direct investment and plant productivity in Indonesia," Journal of International Economics, Elsevier, vol. 79(1), pages 42-53, September.
    19. Xu He & Qin-Lei Jing, 2022. "The Impact of Environmental Tax Reform on Total Factor Productivity of Heavy-Polluting Firms Based on a Dual Perspective of Technological Innovation and Capital Allocation," Sustainability, MDPI, vol. 14(22), pages 1-17, November.
    20. Martin Berka & Michael B. Devereux & Charles Engel, 2018. "Real Exchange Rates and Sectoral Productivity in the Eurozone," American Economic Review, American Economic Association, vol. 108(6), pages 1543-1581, June.

    More about this item

    Keywords

    Productivity; Benchmarking; Regulation of public utilities; Produktivita; Benchmarking; Regulace síťových odvětví;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities

    Statistics

    Access and download statistics

    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:prg:jnleam:v:2013:y:2013:i:3:id:206:p:62-73. 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: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    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.