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The efficiency of TVA power distributors

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  • E. Tylor Claggett

    (School of Business, University of Southern Maine, Maine, USA)

  • Gary D. Ferrier

    (Department of Economics, The University of Arkansas, Arkansas, USA)

Abstract

This study utilizes linear programming and regression for identifying distributors of Tennessee Valley Authority (TVA) power that deviate from the normal efficiency levels and for listing distributor attributes that affect these efficiencies. The conclusions are: (1) most TVA distributors are reasonably efficient; however, they appear to be more efficient with respect to technical and scale measures than with respect to cost and allocation measures; (2) TVA distributors tend to over use labor and capital, but utilize purchased wholesale power appropriately; (3) TVA distributors display increasing, decreasing and constant returns to scale, depending on observation; and (4) firm attributes that impact efficiencies the most are: distribution of utilities other than electricity, state location, service area size, the relative amount of power distributed to small customers, the ratio of small customers to large customers and the total amount of electrical energy distributed. © 1998 John Wiley & Sons, Ltd.

Suggested Citation

  • E. Tylor Claggett & Gary D. Ferrier, 1998. "The efficiency of TVA power distributors," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 19(6), pages 365-376.
    • Handle: RePEc:wly:mgtdec:v:19:y:1998:i:6:p:365-376
    DOI: 10.1002/(SICI)1099-1468(199809)19:6<365::AID-MDE906>3.0.CO;2-O
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    Cited by:

    1. 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.
    2. Lawrence Southwick, 2005. "Economies of scale and market power in policing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(8), pages 461-473.
    3. Burnett, Royce D. & Hansen, Don R., 2008. "Ecoefficiency: Defining a role for environmental cost management," Accounting, Organizations and Society, Elsevier, vol. 33(6), pages 551-581, August.
    4. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
    5. 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, vol. 37(6), pages 2433-2439, June.

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