The Effects of Competition Policy on TFP Growth: Some Evidence from the Malaysian Electricity Supply Industry
The main objectives of this paper are to measure total factor productivity (TFP) growth in the electricity supply industry in Peninsular Malaysia from 1975 to 2005 and to assess the impact of private entry reforms upon TFP in this industry. Prior to 1995, a government-linked, vertically-integrated electricity utility, Tenaga Nasional Berhad (TNB), was essentially the sole operator. However, since 1995 privately-owned Independent Power Producers (IPPs) have also begun generating electricity, all of which is purchased by TNB under fixed Power Purchase Agreements (PPAs). The introduction of IPPs has reduced the need for TNB to find finance for new power plants. It has been argued that the participation of IPPs in the electricity generation industry should also facilitate improvements in industry productivity; however this proposition is yet to be tested. In this study we calculate TFP growth using TÃ¶rnqvist index methods, finding that there is no direct evidence of productivity improvements attributable to the privatization. Furthermore, it is not clear that consumers have benefited from this, since the PPAs have generally been quite generous to the IPPs in terms of risk sharing and prices paid.
|Date of creation:||2009|
|Contact details of provider:|| Postal: St. Lucia, Qld. 4072|
Phone: +61 7 3365 6570
Fax: +61 7 3365 7299
Web page: http://www.uq.edu.au/economics/
More information through EDIRC
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.:
- Estache, Antonio & Rossi, Martin A., 2005.
"Do regulation and ownership drive the efficiency of electricity distribution? Evidence from Latin America,"
Elsevier, vol. 86(2), pages 253-257, February.
- Antonio Estache & Martin Rossi, 2004. "Do Regulation and Ownership Drive the Efficiency of Electricity Distribution? Evidence from Latin America," ULB Institutional Repository 2013/43972, ULB -- Universite Libre de Bruxelles.
- Nagayama, Hiroaki, 2009. "Electric power sector reform liberalization models and electric power prices in developing countries: An empirical analysis using international panel data," Energy Economics, Elsevier, vol. 31(3), pages 463-472, May.
- Sioshansi, Fereidoon P., 2006. "Electricity market reform: What has the experience taught us thus far?," Utilities Policy, Elsevier, vol. 14(2), pages 63-75, June.
- Tim Coelli & Antonio Estache & Sergio Perelman & Lourdes Trujillo, 2003. "A Primer on Efficiency Measurement for Utilities and Transport Regulators," World Bank Publications, The World Bank, number 15149, May.
- Antonio Estache & Tim Coelli & Sergio Perelman & Lourdes Trujillo, 2003. "A Primer on Efficiency Measurement for Utilities and Transport Regulators," ULB Institutional Repository 2013/44106, ULB -- Universite Libre de Bruxelles.
- Massimo Filippini & Cornelia Luchsinger, 2007. "Economies of scale in the Swiss hydropower sector," Applied Economics Letters, Taylor & Francis Journals, vol. 14(15), pages 1109-1113.
- Massimo Filippini & Cornelia Luchsinger, 2005. "Economies of Scale in the Swiss Hydropower Sector," CEPE Working paper series 05-44, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Scott Atkinson & Claudia Halabí, 2005. "Economic Efficiency and Productivity Growth in the Post-Privatization Chilean Hydroelectric Industry," Journal of Productivity Analysis, Springer, vol. 23(2), pages 245-273, 05.
- Pollitt, M.G., 1999. "A survey of the liberalisation of public enterprises in the UK since 1979," Cambridge Working Papers in Economics 9901, Faculty of Economics, University of Cambridge.
- Domah, P. & Pollitt, M.G., 2000. "The Restructuring and Privatisation of Electricity Distribution and Supply Businesses in England and Wales: A Social Cost Benefit Analysis," Cambridge Working Papers in Economics 0007, Faculty of Economics, University of Cambridge.
- 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, vol. 30(1), pages 15-38, January.
- Sioshansi, Fereidoon P., 2006. "Electricity Market Reform: What Have We Learned? What Have We Gained?," The Electricity Journal, Elsevier, vol. 19(9), pages 70-83, November.
- Fare, R. & Grosskopf, S. & Pasurka, C., 1986. "Effects on relative efficiency in electric power generation due to environmental controls," Resources and Energy, Elsevier, vol. 8(2), pages 167-184, June. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:qld:uqcepa:73. 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: (SOE IT)
If references are entirely missing, you can add them using this form.