Determinants of the Efficiency of Electricity Generation in Latin America and Caribbean Countries Using a Cragg’s Regression Model

Sebastian Cuadros, Yeny E. Rodríguez and Javier Contreras ()
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Sebastian Cuadros: Financial and Accounting Department, ICESI University, Cali 760031, Colombia
Yeny E. Rodríguez: School of Management, Universidad de los Andes, Bogotá 111711, Colombia
Javier Contreras: E.T.S. de Ingeniería Industrial, University of Castilla-La Mancha, 13071 Ciudad Real, Spain

Energies, 2023, vol. 16, issue 23, 1-18

Abstract: Measuring and understanding the evolution of the electricity generation efficiency sector is a relevant task for policymakers. This study focuses on assessing the determinants of electricity generation efficiency across 24 countries in Latin America and the Caribbean between 2000 and 2020. A hurdle model was employed to account for the censored nature of the dependent variable. The findings show a positive impact of opening up the electricity sector in fully efficient countries. Market liberalization and the involvement of privately owned power plants contribute to efficiency gains in inefficient countries. Additionally, the tariff protectionism level exhibits positive effects for completely efficient and inefficient countries. These results provide valuable insights, as less-efficient countries can glean strategies from their more efficient counterparts to enhance their electricity generation efficiency.

Keywords: efficiency; data envelopment analysis; hurdle model; openness; power generation (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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