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Perfomance and Efficiency in Colombia's Power Distribution Sistem: Effects of the 1994 Reform

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  • Carlos Pombo

    ()

  • Rodrigo Taborda

    ()

Abstract

We asess evolution in perfomance, efficiency and productivity of Colombia's power distribution utilitiesbefore and after the 1994 regulatory reform that introduced electricity market activities for the power sector in 12 distribution companies from 1985 to 2001. Perfomance is evaluated contrasting changes in meanand median by Wilcoxon Rank Sum and Pearson test on financial and other perfomance indicators. Technical efficiency is measured by means of Data Envelopment Analysis (DEA). The nature of the dataset allows the the estimation of Malmquist productivity index and its evolution in time. Results show a recovery after thereform in the mains perfomance indicators of profitability, parcial input productivity, and output. Plantefficiency and productivity increased after de reform, mainly in the largest utilities used as benchmarks inthe DEA efficiency scores measures. Meanwhile, the less efficient power distribution companies did not improve after the reform and were not able to undertake plant restructuring to chatch up in plant efficiency with respectto the Pareto efficient input allocation. Econometric results on DEA efficiency scores suggest a positive effectof policy reform.

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Bibliographic Info

Paper provided by UNIVERSIDAD DEL ROSARIO in its series BORRADORES DE INVESTIGACIÓN with number 006942.

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Length: 39
Date of creation: 30 Jun 2004
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Handle: RePEc:col:000091:006942

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Keywords: Electricity distribution; productive efficiency; power sector Colombia; Malmquist productivity index;

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Cited by:
  1. Du, Limin & He, Yanan & Yan, Jianye, 2013. "The effects of electricity reforms on productivity and efficiency of China's fossil-fired power plants: An empirical analysis," Energy Economics, Elsevier, Elsevier, vol. 40(C), pages 804-812.
  2. 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, Elsevier, vol. 39(2), pages 699-713, February.
  3. Tooraj Jamasb & Rabindra Nepal & Govinda Timilsina & Michael Toman, 2014. "Energy Sector Reform, Economic Efficiency and Poverty Reduction," Discussion Papers Series 529, School of Economics, University of Queensland, Australia.
  4. Arocena, Pablo, 2008. "Cost and quality gains from diversification and vertical integration in the electricity industry: A DEA approach," Energy Economics, Elsevier, Elsevier, vol. 30(1), pages 39-58, January.
  5. 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.
  6. Tanaka, Kenta & Managi, Shunsuke, 2013. "Measuring Productivity Gains from Deregulation of the Japanese Urban Gas Industry," MPRA Paper 44630, University Library of Munich, Germany.
  7. Zhou, P. & Ang, B.W. & Han, J.Y., 2010. "Total factor carbon emission performance: A Malmquist index analysis," Energy Economics, Elsevier, Elsevier, vol. 32(1), pages 194-201, January.
  8. Jinchao Li & Jinying Li & Fengting Zheng, 2014. "Unified Efficiency Measurement of Electric Power Supply Companies in China," Sustainability, MDPI, Open Access Journal, vol. 6(2), pages 779-793, February.
  9. Kopsakangas-Savolainen, Maria & Svento, Rauli, 2008. "Estimation of cost-effectiveness of the Finnish electricity distribution utilities," Energy Economics, Elsevier, Elsevier, vol. 30(2), pages 212-229, March.
  10. 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.
  11. Sueyoshi, Toshiyuki & Goto, Mika & Ueno, Takahiro, 2010. "Performance analysis of US coal-fired power plants by measuring three DEA efficiencies," Energy Policy, Elsevier, Elsevier, vol. 38(4), pages 1675-1688, April.
  12. Alexander Cotte Poveda, 2012. "Estimating Effectiveness of the Control of Violence and Socioeconomic Development in Colombia: An Application of Dynamic Data Envelopment Analysis and Data Panel Approach," Social Indicators Research, Springer, Springer, vol. 105(3), pages 343-366, February.
  13. Taniguchi, Mariko & Kaneko, Shinji, 2009. "Operational performance of the Bangladesh rural electrification program and its determinants with a focus on political interference," Energy Policy, Elsevier, Elsevier, vol. 37(6), pages 2433-2439, June.
  14. Chang, Dong-Shang & Chen, Yi-Tui & Chen, Wen-Den, 2009. "The exogenous factors affecting the cost efficiency of power generation," Energy Policy, Elsevier, Elsevier, vol. 37(12), pages 5540-5545, December.
  15. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "Measuring environmental performance under different environmental DEA technologies," Energy Economics, Elsevier, Elsevier, vol. 30(1), pages 1-14, January.
  16. Chiu, Ching-Ren & Liou, Je-Liang & Wu, Pei-Ing & Fang, Chen-Ling, 2012. "Decomposition of the environmental inefficiency of the meta-frontier with undesirable output," Energy Economics, Elsevier, Elsevier, vol. 34(5), pages 1392-1399.
  17. Assaf, A. George & Barros, Carlos Pestana & Managi, Shunsuke, 2011. "Cost efficiency of Japanese steam power generation companies: A Bayesian comparison of random and fixed frontier models," Applied Energy, Elsevier, Elsevier, vol. 88(4), pages 1441-1446, April.
  18. Jorge E. Galán & Michael G. Pollitt, 2014. "Inefficiency persistence and heterogeneity in Colombian electricity distribution utilities," Cambridge Working Papers in Economics, Faculty of Economics, University of Cambridge 1423, Faculty of Economics, University of Cambridge.
  19. Rodrigo Taborda & Julieth Santamaría, 2011. "Productivity growth in electric energy retail in Colombia. A bootstrapped malmquist indices approach," DOCUMENTOS DE TRABAJO 009152, UNIVERSIDAD DEL ROSARIO.
  20. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "Efficiency-based rank assessment for electric power industry: A combined use of Data Envelopment Analysis (DEA) and DEA-Discriminant Analysis (DA)," Energy Economics, Elsevier, Elsevier, vol. 34(3), pages 634-644.

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