Technical efficiency in electricity generation - the impact of smallness and isolation of island economies

Preetum Domah

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: This paper conducts a comparative technical efficiency analysis of electricity generators in 16 small island economies using panel data, and two methodologies: data envelopment analysis (DEA) and stochastic frontier analysis (SFA). The results indicate neither apparent differences in the production structure between islands and non-islands electric utilities, nor any evidence suggesting that they are less technically efficient. At a theoretical level, our results suggest that benchmarking of small islands, using non-island generating utilities as comparators, is both feasible and desirable given the lack of historical generation data for most small islands. On a more empirical basis, our study bridges an important gap in research on the efficiency of small and interconnected electricity systems.

Keywords: Electricity; SFA; Malmquist DEA; small islands (search for similar items in EconPapers)
JEL-codes: D20 L25 L94 N70 (search for similar items in EconPapers)
Pages: 26
Date: 2002-10
New Economics Papers: this item is included in nep-com and nep-ene
Note: CMI IO
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Citations: View citations in EconPapers (10)

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