A study on the technical efficiency of power companies in the southern region of Vietnam

Abstract

This study applies data envelopment analysis (DEA) approach to analyze the performance of power companies, mainly and typically in the southern region of Vietnam. The results analyzed for 21 power companies under the Vietnam Electricity’s Southern Power Corporation from 2011 to 2017 show that the average overall technical efficiency of power companies increased in the period from 2011-2017. In 2017, there are 8 power companies with an overall technical efficiency OTE score of 1 which are considered the most efficient among the companies under the study. The study also indicates potential input reduction and potential output addition, i.e. the potential to improve the overall technical efficiency of power companies.
Keywords
data envelopment analysis (DEA) power company technical efficiency

References

1.
Arcos-Vargas A., F. Núđez-Hernández và Gabriel Villa-Caro. (2017). A DEA analysis of electricity distribution in Spain: An industrial policy recommendation, Tạp chí Energy Policy, Số 102, trang 583-592.
2.
Charnes A., W.W. Cooper và E. Rhodes. 1978). Measuring the efficiency of decision making units. Tạp chí European Journal of Operational Research, Số 2(6), trang 429-444.
3.
Chen Tser-Yieth và Tsai-Lien Yeh. (1998). A study of efficiency evaluation in Taiwans banks. Tạp chí International Journal of Service Industry Management, Số 9(5), trang 402-415.
4.
Coelli Timothy J., D.S. Prasada Rao, Christopher J. O'Donnell và George E. Battes. (2005). An Introduction to Efficiency and Productivity Analysis, Springer Science+Business Media, Inc.
5.
Dai Xiaofeng và Timo Kuosmanen. (2014). Best-practice benchmarking using clustering methods: Application to energy regulation, Tạp chí Omega, Số 42(1), Trang: 179-188.
6.
Estache Antonio, Martín A. Rossi và Christian A. Ruzzier. (2004). The Case for International Coordination of Electricity Regulation: Evidence from the Measurement of Efficiency in South America, Tạp chí Journal of Regulatory Economics, Số 25(3), trang 271-295.
7.
Farrell M. J. (1957). The Measurement of Productive Efficiency Tạp chí Journal of the Royal Statistical Society, Số 120(3), trang 253-290.
8.
Jamasb T. và M. Pollit. (2001). Benchmarking and regulation: international electricity experience. Tạp chí Utilities Policy, Số 9, trang 107-130.
9.
Kumar Sunil và Rachita Gulati. (2008), An Examination of Technical, Pure Technical, and Scale Efficiencies in Indian Public Sector Banks using Data Envelopment Analysis. Tạp chí Eurasian Journal of Business and Economics, Số 1(2), trang 33-69.
10.
Mullarkey Shane, Brian Caulfield, Sarah McCormack và Biswajit Basu. (2015). A framework for establishing the technical efficiency of Electricity Distribution Counties (EDCs) using Data Envelopment Analysis. Tạp chí Energy Conversion and Management, Số 94, trang 112-123.
11.
Resende Marcelo. (2002). Relative efficiency measurement and prospects for yardstick competition in Brazilian electricity distribution. Tạp chí Energy Policy, Số 30(8), trang 637-647.
12.
Weyman-Jones Thomas G. (1991). Productive efficiency in a regulated industry: The area electricity boards of England and Wales. Tạp chí Energy Economics, Số 13(2), trang116-122.