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Performance Assessment of Japanese Electricity and Gas Companies during 2002–2018: Three DEA Approaches

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  • Toshiyuki Sueyoshi

    (Department of Management, New Mexico Institute of Mining & Technology, 801 Leroy Place, Socorro, NM 87801, USA
    Tokyo Tech World Research Hub Initiative, Tokyo Institute of Technology, School of Environment and Society, 3-3-6, Shibaura, Minato-ku, Tokyo 108-0023, Japan)

  • Mika Goto

    (Tokyo Institute of Technology, School of Environment and Society, 3-3-6, Shibaura, Minato-ku, Tokyo 108-0023, Japan)

Abstract

This study has compared Japan’s major electricity and gas companies in terms of their corporate performance measures from 2002 to 2018 using three types of Data Envelopment Analysis (DEA) approaches. We develop a new type of efficiency measures and indexes for DEA and then compare the performance of major electric power companies and city gas companies by examining a recent data set that include years after the Fukushima Daiichi Nuclear Power Plant accident. The data set incorporates the number of patents as an output that represents companies’ capability for technology innovation to investigate intertemporal changes of efficiency through index measures. The results provide us with two important findings. First, the electricity industry has experienced long-term difficulty due to the nuclear plant disaster; while the gas industry experienced less difficulty from the accident. Second, both industries have been gradually improving performance measures in recent years. However, the gas industry has outperformed the electricity industry. From the results, this study discusses important policy implications for Japan’s energy utility industry and academic research on the industry.

Suggested Citation

  • Toshiyuki Sueyoshi & Mika Goto, 2021. "Performance Assessment of Japanese Electricity and Gas Companies during 2002–2018: Three DEA Approaches," Energies, MDPI, vol. 14(6), pages 1-18, March.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:6:p:1705-:d:520029
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    References listed on IDEAS

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    1. Toshiyuki Sueyoshi & Youngbok Ryu & Mika Goto, 2020. "Operational Performance of Electric Power Firms: Comparison between Japan and South Korea by Non-Radial Measures," Energies, MDPI, vol. 13(15), pages 1-23, August.
    2. Magdalena Ziolo & Sandra Jednak & Gordana Savić & Dragana Kragulj, 2020. "Link between Energy Efficiency and Sustainable Economic and Financial Development in OECD Countries," Energies, MDPI, vol. 13(22), pages 1-28, November.
    3. Fei Mo & Derek Wang, 2019. "Environmental Sustainability of Road Transport in OECD Countries," Energies, MDPI, vol. 12(18), pages 1-14, September.
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    5. Jiro Nemoto & Mika Goto, 2003. "Measurement of Dynamic Efficiency in Production: An Application of Data Envelopment Analysis to Japanese Electric Utilities," Journal of Productivity Analysis, Springer, vol. 19(2), pages 191-210, April.
    6. 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.
    7. Sueyoshi, Toshiyuki & Goto, Mika, 2011. "Operational synergy in the US electric utility industry under an influence of deregulation policy: A linkage to financial performance and corporate value," Energy Policy, Elsevier, vol. 39(2), pages 699-713, February.
    8. Toshiyuki Sueyoshi & Mika Goto, 2017. "World trend in energy: an extension to DEA applied to energy and environment," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-23, December.
    9. Robert Wilson, 2002. "Architecture of Power Markets," Econometrica, Econometric Society, vol. 70(4), pages 1299-1340, July.
    10. Sueyoshi, Toshiyuki & Goto, Mika & Shang, Jennifer, 2009. "Core business concentration vs. corporate diversification in the US electric utility industry: Synergy and deregulation effects," Energy Policy, Elsevier, vol. 37(11), pages 4583-4594, November.
    11. Jin-Peng Liu & Qian-Ru Yang & Lin He, 2017. "Total-Factor Energy Efficiency (TFEE) Evaluation on Thermal Power Industry with DEA, Malmquist and Multiple Regression Techniques," Energies, MDPI, vol. 10(7), pages 1-14, July.
    12. 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.
    13. Toshiyuki Sueyoshi & Youngbok Ryu & Ji-Young Yun, 2021. "COVID-19 Response and Prospects of Clean/Sustainable Energy Transition in Industrial Nations: New Environmental Assessment," Energies, MDPI, vol. 14(4), pages 1-30, February.
    14. Usman Akbar & Muhammad Asif Khan & Marryum Akmal & Éva Zsuzsanna Tóth Naárné & Judit Oláh, 2020. "Trade-Offs for the Optimal Energy Efficiency of Road Transportation: Domestic Cases in Developing Countries," Energies, MDPI, vol. 13(24), pages 1-14, December.
    15. Tao Xu & Jianxin You & Hui Li & Luning Shao, 2020. "Energy Efficiency Evaluation Based on Data Envelopment Analysis: A Literature Review," Energies, MDPI, vol. 13(14), pages 1-20, July.
    16. Kishimoto, Jo & Goto, Mika & Inoue, Kotaro, 2017. "Do acquisitions by electric utility companies create value? Evidence from deregulated markets," Energy Policy, Elsevier, vol. 105(C), pages 212-224.
    17. Toshiyuki Sueyoshi & Mika Goto, 2019. "Comparison among Three Groups of Solar Thermal Power Stations by Data Envelopment Analysis," Energies, MDPI, vol. 12(13), pages 1-20, June.
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