Productivity change and innovation in Norwegian electricity distribution companies

• Type: Article in International Scientific Journal
• Date: 2012

Authors

Vera L. Miguéis (Author) FEUP; A. S. Camanho (Author) FEUP; E. Bjørndal (Author) Other; M. Bjørndal (Author) Other

Journal

Title: Journal of the Operational Research Society

Vol. 63 No. 7

Pages: 982-990

ISSN: 0160-5682

Publisher: Taylor & Francis

Indexing

ISI Web of Knowledge - 23 Citations

ISI Web of Science

Scopus - 29 Citations

COMPENDEX

INSPEC

Scientific classification

FOS: Engineering and technology > Other engineering and technologies

CORDIS: Social sciences > Economics > Management studies

Other information

Authenticus ID: P-002-8NP

DOI: 10.1057/jors.2011.82

Abstract (EN): Regulators of electricity distribution networks have typically applied Data Envelopment Analysis (DEA) to cross-section data for benchmarking purposes. However, the use of panel data to analyse the impact of regulatory policies on productivity change over time is less frequent. The main purpose of this paper is to construct a Malmquist productivity index to examine the recent productivity change experienced by Norwegian distribution companies between 2004 and 2007. The Malmquist index is decomposed in order to explore the sources of productivity change, and to identify the innovator companies that pushed the frontier forward each year. The input and output variables considered are those used by the Norwegian regulator. In order to reflect appropriately the exogenous conditions where the companies operate, the efficiency model used in this paper incorporates geography variables as outputs of the DEA model. Unlike the model used by the regulator, we included virtual weight restrictions in the DEA formulation to correct the biases in the DEA results that may be associated to a judicious choice of weights by some of the companies.

Language: English

Type (Professor's evaluation): Scientific