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Efficiency Analysis of East European Electricity Distribution in Transition : Legacy of the Past?

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Author Info
Astrid Cullmann
Jürgen Apfelbeck
Christian von Hirschhausen

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Abstract

This paper provides a cross-country efficiency analysis of electricity distribution companies in East European transition countries (Poland, Czech Republic, Slovakia and Hungary). We compare the relative technical efficiency of East European regional distribution companies (RDCs) among themselves, as well as with German RDCs. We use the nonparametric DEA, and also apply bootstrapping techniques and the FDH-estimator; in addition, we carry out parametric analyses, mainly SFA (stochastic frontier analysis) and COLS (corrected ordinary least squares). The results suggest that the Polish distribution companies are still inefficiently small. The Czech Republic and Slovakia feature the highest efficiency.

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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 553.

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Length: III, 18 p.
Date of creation: 2006
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Handle: RePEc:diw:diwwpp:dp553

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Related research
Keywords: Efficiency analysis Econometric methods Electricity distribution Transition Eastern Europe

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Find related papers by JEL classification:
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C67 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Input-Output Models

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  1. Jamasb, T. & Pollitt, M., 2000. "Benchmarking and regulation: international electricity experience," Utilities Policy, Elsevier, vol. 9(3), pages 107-130, September. [Downloadable!] (restricted)
  2. Simar, L. & Wilson, P.W., 1995. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Non-parametric Frontier Models," Papers 9543a, Catholique de Louvain - Center for Operations Research and Economics.
  3. Christian Growitsch & Jamasb, T. & Pollitt, M., 2005. "Quality of Service, Efficiency and Scale in Network Industries: An analysis of European electricity distribution," Cambridge Working Papers in Economics 0538, Faculty of Economics, University of Cambridge. [Downloadable!]
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  4. Jamasb, T. & Pollitt, M., 2001. "International Benchmarking and Yardstick Regulation: An Application to European Electricity Utilities," Cambridge Working Papers in Economics 0115, Faculty of Economics, University of Cambridge. [Downloadable!]
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This page was last updated on 2008-10-6.


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