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Original Article

Ekonomik Yaklasim. 2016; 27(101): 161-183


Technical Efficiency in Turkish Electricity Distribution Market: An Application of Stochastic Frontier Analysis (SFA)

Aydın Çelen.




Abstract
Cited by 1 Articles

This study analyzes the technical efficiencies of Turkish electricity distribution companies (21 in total) throughout 2002 and 2009. For this aim, we used three different model specifications, all of which are generated from a Stochastic Frontier Analysis (SFA) model. It has been shown that the signs and significance levels of the coefficient estimations are very consistent and satisfactory in all models. For example, all model specifications confirm the presence of increasing returns to scale and of a mild technological progress over time in the market. In addition, among the inputs, all inputs except the quality of the electricity delivered are important in enhancing technical efficiency of the electricity distribution companies, according to the alternative specifications.

Key words: Technical Efficiency, Turkish Electricity Distribution Market, Stochastic Frontier Analysis (SFA). JEL codes: L51, L94, C13.

Article Language: EnglishTurkish






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