Advanced Search
MyIDEAS: Login to save this article or follow this journal

Cost efficiency of Japanese steam power generation companies: A Bayesian comparison of random and fixed frontier models

Contents:

Author Info

  • Assaf, A. George
  • Barros, Carlos Pestana
  • Managi, Shunsuke

Abstract

This study analyses and compares the cost efficiency of Japanese steam power generation companies using the fixed and random Bayesian frontier models. We show that it is essential to account for heterogeneity in modelling the performance of energy companies. Results from the model estimation also indicate that restricting CO2 emissions can lead to a decrease in total cost. The study finally discusses the efficiency variations between the energy companies under analysis, and elaborates on the managerial and policy implications of the results.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6V1T-51FP692-1/2/3642ac5264bcf31b0a0f657cc81eabc7
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Applied Energy.

Volume (Year): 88 (2011)
Issue (Month): 4 (April)
Pages: 1441-1446

as in new window
Handle: RePEc:eee:appene:v:88:y:2011:i:4:p:1441-1446

Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description

Order Information:
Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic

Related research

Keywords: Japan Steam power generating companies Random frontier model Fixed frontier model Bayesian;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Pollitt, M.G., 1995. "Ownership and Efficiency in Nuclear Power Production," Cambridge Working Papers in Economics 9518, Faculty of Economics, University of Cambridge.
  2. Bosetti, Valentina & Buchner, Barbara, 2009. "Data Envelopment Analysis of different climate policy scenarios," Ecological Economics, Elsevier, Elsevier, vol. 68(5), pages 1340-1354, March.
  3. Mehdi Farsi & Massimo Filippini, 2008. "An Analysis of Cost-Efficiency in Swiss Multi-utilities," CEPE Working paper series, CEPE Center for Energy Policy and Economics, ETH Zurich 08-60, CEPE Center for Energy Policy and Economics, ETH Zurich.
  4. Francisco J. Ramos-Real & Beatriz Tovar & Mariana Iootty & Edmar Fagundes de Almeida & Helder Jr. Queiroz Pinto, 2008. "The evolution and main determinants of productivity in Brazilian electricity distribution 1998-2005: an empirical analysis," Working Papers 2008-41, FEDEA.
  5. Antonio Estache & MartÃŒn 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, Springer, vol. 25(3), pages 271-295, 05.
  6. Sari, Ramazan & Soytas, Ugur, 2009. "Are global warming and economic growth compatible? Evidence from five OPEC countries?," Applied Energy, Elsevier, Elsevier, vol. 86(10), pages 1887-1893, October.
  7. Barros, Carlos Pestana, 2008. "Efficiency analysis of hydroelectric generating plants: A case study for Portugal," Energy Economics, Elsevier, Elsevier, vol. 30(1), pages 59-75, January.
  8. Willam Greene, 2005. "Fixed and Random Effects in Stochastic Frontier Models," Journal of Productivity Analysis, Springer, Springer, vol. 23(1), pages 7-32, 01.
  9. Zhou, P. & Ang, B.W., 2008. "Decomposition of aggregate CO2 emissions: A production-theoretical approach," Energy Economics, Elsevier, Elsevier, vol. 30(3), pages 1054-1067, May.
  10. van den Broeck, Julien & Koop, Gary & Osiewalski, Jacek & Steel, Mark F. J., 1994. "Stochastic frontier models : A Bayesian perspective," Journal of Econometrics, Elsevier, Elsevier, vol. 61(2), pages 273-303, April.
  11. Koop, Gary & Osiewalski, Jacek & Steel, Mark F. J., 1997. "Bayesian efficiency analysis through individual effects: Hospital cost frontiers," Journal of Econometrics, Elsevier, Elsevier, vol. 76(1-2), pages 77-105.
  12. Tsionas, E.G., 2001. "Stochastic Frontier Models with Random Coefficients," DEOS Working Papers 130, Athens University of Economics and Business.
  13. Ibrahimo, M.V. & Barros, C.P., 2009. "Relevance or irrelevance of capital structure?," Economic Modelling, Elsevier, Elsevier, vol. 26(2), pages 473-479, March.
  14. Mehdi Farsi & Massimo Filippini & Michael Kuenzle, 2004. "Cost Efficiency in the Swiss Gas Distribution Sector," CEPE Working paper series, CEPE Center for Energy Policy and Economics, ETH Zurich 04-36, CEPE Center for Energy Policy and Economics, ETH Zurich.
  15. Arcos, Angel & de Toledo, Pablo Alvarez, 2009. "An analysis of the Spanish electrical utility industry: Economies of scale, technological progress and efficiency," Energy Economics, Elsevier, Elsevier, vol. 31(3), pages 473-481, May.
  16. Mehdi Farsi & Massimo Filippini, 2003. "Regulation and Measuring Cost Efficiency with Panel Data Models: Application to Electricity Distribution Utilities," CEPE Working paper series, CEPE Center for Energy Policy and Economics, ETH Zurich 03-19, CEPE Center for Energy Policy and Economics, ETH Zurich.
  17. Pombo, Carlos & Taborda, Rodrigo, 2006. "Performance and efficiency in Colombia's power distribution system: Effects of the 1994 reform," Energy Economics, Elsevier, Elsevier, vol. 28(3), pages 339-369, May.
  18. Nassiri, Seyed Mehdi & Singh, Surendra, 2009. "Study on energy use efficiency for paddy crop using data envelopment analysis (DEA) technique," Applied Energy, Elsevier, Elsevier, vol. 86(7-8), pages 1320-1325, July.
  19. Siitonen, Sari & Tuomaala, Mari & Suominen, Markku & Ahtila, Pekka, 2010. "Implications of process energy efficiency improvements for primary energy consumption and CO2 emissions at the national level," Applied Energy, Elsevier, Elsevier, vol. 87(9), pages 2928-2937, September.
  20. Christopher R. Knittel, 2002. "Alternative Regulatory Methods And Firm Efficiency: Stochastic Frontier Evidence From The U.S. Electricity Industry," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 530-540, August.
  21. Jamasb, Tooraj & Nillesen, Paul & Pollitt, Michael, 2004. "Strategic behaviour under regulatory benchmarking," Energy Economics, Elsevier, Elsevier, vol. 26(5), pages 825-843, September.
  22. Raczka, Jan, 2001. "Explaining the performance of heat plants in Poland," Energy Economics, Elsevier, Elsevier, vol. 23(4), pages 355-370, July.
  23. L. Dean Hiebert, 2002. "The Determinants of the Cost Efficiency of Electric Generating Plants: A Stochastic Frontier Approach," Southern Economic Journal, Southern Economic Association, vol. 68(4), pages 935-946, April.
  24. Goto, Mika & Tsutsui, Miki, 2008. "Technical efficiency and impacts of deregulation: An analysis of three functions in U.S. electric power utilities during the period from 1992 through 2000," Energy Economics, Elsevier, Elsevier, vol. 30(1), pages 15-38, January.
  25. 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.
  26. Lozano, Sebastián & Gutiérrez, Ester, 2008. "Non-parametric frontier approach to modelling the relationships among population, GDP, energy consumption and CO2 emissions," Ecological Economics, Elsevier, Elsevier, vol. 66(4), pages 687-699, July.
  27. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, Elsevier, vol. 136(1), pages 31-64, January.
  28. Arocena, Pablo & Waddams Price, Catherine, 2002. "Generating efficiency: economic and environmental regulation of public and private electricity generators in Spain," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 20(1), pages 41-69, January.
  29. Nakano, Makiko & Managi, Shunsuke, 2008. "Regulatory reforms and productivity: An empirical analysis of the Japanese electricity industry," Energy Policy, Elsevier, Elsevier, vol. 36(1), pages 201-209, January.
  30. Abbott, Malcolm, 2006. "The productivity and efficiency of the Australian electricity supply industry," Energy Economics, Elsevier, Elsevier, vol. 28(4), pages 444-454, July.
  31. Sueyoshi, Toshiyuki, 1999. "Tariff structure of Japanese electric power companies: An empirical analysis using DEA," European Journal of Operational Research, Elsevier, Elsevier, vol. 118(2), pages 350-374, October.
  32. Jamasb, Tooraj & Pollitt, Michael, 2003. "International benchmarking and regulation: an application to European electricity distribution utilities," Energy Policy, Elsevier, Elsevier, vol. 31(15), pages 1609-1622, December.
  33. Managi, Shunsuke & Opaluch, James J. & Jin, Di & Grigalunas, Thomas A., 2006. "Stochastic frontier analysis of total factor productivity in the offshore oil and gas industry," Ecological Economics, Elsevier, Elsevier, vol. 60(1), pages 204-215, November.
  34. Vaninsky, Alexander, 2006. "Efficiency of electric power generation in the United States: Analysis and forecast based on data envelopment analysis," Energy Economics, Elsevier, Elsevier, vol. 28(3), pages 326-338, May.
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 in new window

Cited by:
  1. Pombo, Carlos & Taborda, Rodrigo, 2006. "Performance and efficiency in Colombia's power distribution system: Effects of the 1994 reform," Energy Economics, Elsevier, Elsevier, vol. 28(3), pages 339-369, May.
  2. Mousavi-Avval, Seyed Hashem & Rafiee, Shahin & Jafari, Ali & Mohammadi, Ali, 2011. "Optimization of energy consumption for soybean production using Data Envelopment Analysis (DEA) approach," Applied Energy, Elsevier, Elsevier, vol. 88(11), pages 3765-3772.
  3. Wang, Yi-Shu & Xie, Bai-Chen & Shang, Li-Feng & Li, Wen-Hua, 2013. "Measures to improve the performance of China’s thermal power industry in view of cost efficiency," Applied Energy, Elsevier, Elsevier, vol. 112(C), pages 1078-1086.
  4. Yixiang Zhang & Zhaohua Wang & Guanghui Zhou, 2012. "Determinants and implications of employee electricity saving habit: An empirical study in China," CEEP-BIT Working Papers, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology 35, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:88:y:2011:i:4:p:1441-1446. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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