Measuring Efficiency and Productivity Change in the Turkish Electricity Distribution Sector

Yetkin Cinar () and Tekiner Kaya
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Yetkin Cinar: Ankara University
Tekiner Kaya: Nevsehir Haci Bektas Veli University

A chapter in Applied Operations Research and Financial Modelling in Energy, 2021, pp 69-99 from Springer

Abstract: Abstract This chapter measures the efficiency levels of electricity distribution companies (EDCs) in Turkey by utilising Data Envelopment Analysis (DEA) method and determines how productivities have changed via the Malmquist Productivity Indices (MPI) in recent years. The study additionally focuses on introducing the potential environmental factors’ effect on efficiency based on a Tobit Analysis. Furthermore, the minimum optimal operating scale and resources that are key in efficiency have been analysed and evaluated. For all these analyses, panel data for the Turkish electricity distribution sector, consisting of 21 EDCs from 2015 to 2019, are utilised. The technical and scale efficiency scores for five years and the technological and efficiency changes every two years within this period have been calculated and presented. The results mainly demonstrate that the average efficiency scores of EDCs decreased slightly in the analysis period. While reaching their efficiency scores, the EDCs assigned the majority of weights to transformer capacity as input and number of employees as output. Additionally, our findings assert that the factors of energy loss and commercial and industrial electricity delivered affect efficiencies significantly, while the factors related to the development and urbanisation status of the regions do not.

Keywords: Electricity distribution companies; Efficiency; Turkey; Data Envelopment Analysis; Tobit (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-84981-8_5

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DOI: 10.1007/978-3-030-84981-8_5

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