Efficiency Considerations in the Electricity Supply Industry; The Case of Iran
Electricity plays a vital role in modern economies. It is considered a core activity in the economic development plans of most countries. The requirement of large investments in the power sector and the rising cost of electricity provision have intensified the need for increased efficiency in the Iranian electricity supply industry. This study provides an efficiency analysis of the electricity industry in Iran. It presents efficiency scores for the Iranian electricity industry relative to the efficient frontier for electricity production, and in relation to the electricity industries of 26 developing countries. The average level of technical efficiencies in the electricity industry of these developing countries, the Iranian power plants and regional distribution organisations are estimated at 77%, 72.7% and 81% respectively. They are based on a two-year panel data of 26 developing countries, six-year unbalanced panel data of thirty Iranian power plants and one cross-section of thirty distribution organisations taken in 1995. This study utilises two popular techniques; Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA). The use of both SFA and DEA extends the capabilities of addressing issues in ways that would otherwise not be available. Econometric models using panel data are employed to investigate technical inefficiencies. The Malmquist index approach is applied to investigate technological change, technical and scale efficiency changes in the electricity industry in the sample of developing countries as well as Iranian power plants. The DEA efficiency scores are used in Tobit models to determine which factors are the main causes of inefficiency.
|Date of creation:||Jul 1998|
|Contact details of provider:|| Postal: Guildford, Surrey GU2 5XH, UK|
Phone: +44(0)1483 686956
Fax: +44(0)1483 689548
Web page: http://www.seec.surrey.ac.uk
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sur:seedps:95. 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: (Lester C Hunt)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.