[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v62y2013icp207-214.html
   My bibliography  Save this article

Estimating and decomposing productivity growth of the electricity generation industry in Malaysia: A stochastic frontier analysis

Author

Listed:
  • See, Kok Fong
  • Coelli, Tim
Abstract
This study examines the total factor productivity (TFP) growth of the Malaysian electricity generation industry over the 1998 to 2005 period. The stochastic frontier analysis (SFA) approach is used to measure TFP change and decompose TFP growth into efficiency change and technical progress. We find that it achieved average annual TFP growth of 2.34%, with technical change contributing the most to the TFP growth over the eight year period. We hence hypothesise that the new power plants with their newer capital-embodied technologies commencing during the sample period are likely to be the main reason for this strong technical change. In addition, it is also noted that this estimate for the Malaysian electricity generation industry is larger than the estimate obtained for the electricity sector as a whole, where we obtain 1.34% per year for a comparable period.

Suggested Citation

  • See, Kok Fong & Coelli, Tim, 2013. "Estimating and decomposing productivity growth of the electricity generation industry in Malaysia: A stochastic frontier analysis," Energy Policy, Elsevier, vol. 62(C), pages 207-214.
    • Handle: RePEc:eee:enepol:v:62:y:2013:i:c:p:207-214
    DOI: 10.1016/j.enpol.2013.06.115
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421513006228
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2013.06.115?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hugo Fuentes & Emili Grifell-Tatjé & Sergio Perelman, 2001. "A Parametric Distance Function Approach for Malmquist Productivity Index Estimation," Journal of Productivity Analysis, Springer, vol. 15(2), pages 79-94, March.
    2. Tim Coelli & Antonio Estache & Sergio Perelman & Lourdes Trujillo, 2003. "A Primer on Efficiency Measurement for Utilities and Transport Regulators," World Bank Publications - Books, The World Bank Group, number 15149.
    3. Scott Atkinson & Claudia Halabí, 2005. "Economic Efficiency and Productivity Growth in the Post-Privatization Chilean Hydroelectric Industry," Journal of Productivity Analysis, Springer, vol. 23(2), pages 245-273, May.
    4. Kok Fong See & Tim Coelli, 2009. "The Effects of Competition Policy on TFP Growth: Some Evidence from the Malaysian Electricity Supply Industry," CEPA Working Papers Series WP062009, School of Economics, University of Queensland, Australia.
    5. Ali Emami Meibodi, 1998. "Efficiency Considerations in the Electricity Supply Industry; The Case of Iran," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 95, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
    6. repec:bla:scandj:v:94:y:1992:i:0:p:s193-205 is not listed on IDEAS
    7. Luis Orea, 2002. "Parametric Decomposition of a Generalized Malmquist Productivity Index," Journal of Productivity Analysis, Springer, vol. 18(1), pages 5-22, July.
    8. Tooraj Jamasb, 2002. "Reform and regulation of the electricity sectors in developing countries," Working Papers EP08, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    9. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
    10. Andrew N. Kleit & Dek Terrell, 2001. "Measuring Potential Efficiency Gains From Deregulation Of Electricity Generation: A Bayesian Approach," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 523-530, August.
    11. Rodríguez Pardina, Martín A. & Rossi, Martín, 2000. "Technical Change and Catching-up: The Electricity Distribution Sector in South America," UADE Working Papers 11_2000, Instituto de Economía, Universidad Argentina de la Empresa.
    12. Estache, Antonio & Rossi, Martin A., 2005. "Do regulation and ownership drive the efficiency of electricity distribution? Evidence from Latin America," Economics Letters, Elsevier, vol. 86(2), pages 253-257, February.
    13. Nagayama, Hiroaki, 2009. "Electric power sector reform liberalization models and electric power prices in developing countries: An empirical analysis using international panel data," Energy Economics, Elsevier, vol. 31(3), pages 463-472, May.
    14. See, Kok Fong & Coelli, Tim, 2012. "An analysis of factors that influence the technical efficiency of Malaysian thermal power plants," Energy Economics, Elsevier, vol. 34(3), pages 677-685.
    15. Preetum Domah & Michael G. Pollitt, 2001. "The restructuring and privatisation of the electricity distribution and supply businesses in England," Fiscal Studies, Institute for Fiscal Studies, vol. 22(1), pages 107-146, March.
    16. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, December.
    17. Fereidoon P. Sioshansi, 2008. "Electricity market reform and 'reform of the reforms'," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 29(1/2), pages 3-27.
    18. Weyman-Jones, Thomas G., 1991. "Productive efficiency in a regulated industry : The area electricity boards of England and Wales," Energy Economics, Elsevier, vol. 13(2), pages 116-122, April.
    19. Tim Coelli & Denis Lawrence (ed.), 2006. "Performance Measurement and Regulation of Network Utilities," Books, Edward Elgar Publishing, number 3801.
    20. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    21. Yunos, Jamaluddin Mohd & Hawdon, David, 1997. "The efficiency of the National Electricity Board in Malaysia: An intercountry comparison using DEA," Energy Economics, Elsevier, vol. 19(2), pages 255-269, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jan Kluge & Sarah Lappöhn & Kerstin Plank, 2023. "Predictors of TFP growth in European countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 109-140, February.
    2. Paul, Satya & Shankar, Sriram, 2022. "Regulatory reforms and the efficiency and productivity growth in electricity generation in OECD countries," Energy Economics, Elsevier, vol. 108(C).
    3. Dai, Xiaoyong & Cheng, Liwei, 2016. "Market distortions and aggregate productivity: Evidence from Chinese energy enterprises," Energy Policy, Elsevier, vol. 95(C), pages 304-313.
    4. Xie, Bai-Chen & Ni, Kang-Kang & O'Neill, Eoghan & Li, Hong-Zhou, 2021. "The scale effect in China's power grid sector from the perspective of malmquist total factor productivity analysis," Utilities Policy, Elsevier, vol. 69(C).
    5. Mirza, Faisal Mehmood & Mushtaq, Iqra & Ullah, Kafait, 2017. "Assessing the efficiency dynamics of post reforms electric distribution utilities in Pakistan," Utilities Policy, Elsevier, vol. 47(C), pages 18-28.
    6. Lei Wang & Ruyin Long & Hong Chen, 2017. "Study of Urban Energy Performance Assessment and Its Influencing Factors Based on Improved Stochastic Frontier Analysis: A Case Study of Provincial Capitals in China," Sustainability, MDPI, vol. 9(7), pages 1-18, June.
    7. See, Kok Fong & Coelli, Tim, 2014. "Total factor productivity analysis of a single vertically integrated electricity utility in Malaysia using a Törnqvist index method," Utilities Policy, Elsevier, vol. 28(C), pages 62-72.
    8. Liu, Xiao-Yan & Pollitt, Michael G. & Xie, Bai-Chen & Liu, Li-Qiu, 2019. "Does environmental heterogeneity affect the productive efficiency of grid utilities in China?," Energy Economics, Elsevier, vol. 83(C), pages 333-344.
    9. Ajayi, V. & Weyman-Jones, T., 2021. "State-Level Electricity Generation Efficiency: Do Restructuring and Regulatory Institutions Matter in the US?," Cambridge Working Papers in Economics 2166, Faculty of Economics, University of Cambridge.
    10. Seifert, Stefan, 2015. "Productivity Growth and its Sources - A StoNED Metafrontier Analyis of the German Electricity Generating Sector," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112975, Verein für Socialpolitik / German Economic Association.
    11. Ajayi, Victor & Weyman-Jones, Tom, 2021. "State-level electricity generation efficiency: Do restructuring and regulatory institutions matter in the US?," Energy Economics, Elsevier, vol. 104(C).
    12. Makridou, Georgia & Andriosopoulos, Kostas & Doumpos, Michael & Zopounidis, Constantin, 2016. "Measuring the efficiency of energy-intensive industries across European countries," Energy Policy, Elsevier, vol. 88(C), pages 573-583.
    13. Stefan Seifert, 2015. "Measuring Productivity When Technologies Are Heterogeneous: A Semi-Parametric Approach for Electricity Generation," Discussion Papers of DIW Berlin 1526, DIW Berlin, German Institute for Economic Research.
    14. Mirza, Faisal Mehmood & Rizvi, Syed Badar-Ul-Husnain & Bergland, Olvar, 2021. "Service quality, technical efficiency and total factor productivity growth in Pakistan's post-reform electricity distribution companies," Utilities Policy, Elsevier, vol. 68(C).
    15. Barnabé Walheer, 2019. "Dynamic directional nonparametric profit efficiency analysis for a single decision-making unit: an aggregation approach," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(4), pages 1123-1149, December.
    16. Maliyamu Abudureheman & Qingzhe Jiang & Jiong Gong & Abulaiti Yiming, 2023. "Estimating and Decomposing the TFP Growth of Service-Oriented Manufacturing in China: A Translogarithmic Stochastic Frontier Approach," Sustainability, MDPI, vol. 15(7), pages 1-20, March.
    17. Mirza, Faisal Mehmood & Mushtaq, Iqra, 2022. "Estimating the marginal cost of improving services quality in electricity distribution utilities of Pakistan," Energy Policy, Elsevier, vol. 167(C).
    18. Li, Mingshan & Sun, Xiaohua & Wang, Yun & Song-Turner, Helen, 2019. "The impact of political connections on the efficiency of China's renewable energy firms," Energy Economics, Elsevier, vol. 83(C), pages 467-474.
    19. Kluge, Jan & Lappoehn, Sarah & Plank, Kerstin, 2020. "The Determinants of Economic Competitiveness," IHS Working Paper Series 24, Institute for Advanced Studies.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. See, Kok Fong & Coelli, Tim, 2014. "Total factor productivity analysis of a single vertically integrated electricity utility in Malaysia using a Törnqvist index method," Utilities Policy, Elsevier, vol. 28(C), pages 62-72.
    2. Kok Fong See & Tim Coelli, 2009. "The Effects of Competition Policy on TFP Growth: Some Evidence from the Malaysian Electricity Supply Industry," CEPA Working Papers Series WP062009, School of Economics, University of Queensland, Australia.
    3. See, Kok Fong & Coelli, Tim, 2012. "An analysis of factors that influence the technical efficiency of Malaysian thermal power plants," Energy Economics, Elsevier, vol. 34(3), pages 677-685.
    4. Trigo Gamarra, Lucinda, 2008. "The effects of liberalization and deregulation on the performance of financial institutions: The case of the German life insurance market," Thuenen-Series of Applied Economic Theory 93, University of Rostock, Institute of Economics.
    5. Xie, Bai-Chen & Ni, Kang-Kang & O'Neill, Eoghan & Li, Hong-Zhou, 2021. "The scale effect in China's power grid sector from the perspective of malmquist total factor productivity analysis," Utilities Policy, Elsevier, vol. 69(C).
    6. Mirza, Faisal Mehmood & Mushtaq, Iqra & Ullah, Kafait, 2017. "Assessing the efficiency dynamics of post reforms electric distribution utilities in Pakistan," Utilities Policy, Elsevier, vol. 47(C), pages 18-28.
    7. Antonio Estache & Sergio Perelman & Lourdes Trujillo, 2006. "Infrastructure Reform in Developing Economies: Evidence from a survey of efficiency measures," ULB Institutional Repository 2013/44062, ULB -- Universite Libre de Bruxelles.
    8. Jamasb, T. & Pollitt, M., 2000. "Benchmarking and regulation: international electricity experience," Utilities Policy, Elsevier, vol. 9(3), pages 107-130, September.
    9. Jamasb,Tooraj & Nepal,Rabindra & Timilsina,Govinda R., 2015. "A quarter century effort yet to come of age : a survey of power sector reforms in developing countries," Policy Research Working Paper Series 7330, The World Bank.
    10. Tooraj Jamasb & Rabindra Nepal & Govinda R. Timilsina, 2017. "A Quarter Century Effort Yet to Come of Age: A Survey of Electricity Sector Reform in Developing Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    11. Mellah, Thuraya & Ben Amor, Tawfik, 2016. "Performance of the Tunisian Water Utility: An input-distance function approach," Utilities Policy, Elsevier, vol. 38(C), pages 18-32.
    12. Jinjin Zhao, 2020. "Productivity change in the privatized water sector in China (1999–2006)," Journal of Productivity Analysis, Springer, vol. 53(2), pages 227-241, April.
    13. Tovar, Beatriz & Javier Ramos-Real, Francisco & de Almeida, Edmar Fagundes, 2011. "Firm size and productivity. Evidence from the electricity distribution industry in Brazil," Energy Policy, Elsevier, vol. 39(2), pages 826-833, February.
    14. Tooraj Jamasb & Rabindra Nepal & Govinda Timilsina & Michael Toman, 2014. "Energy Sector Reform, Economic Efficiency and Poverty Reduction," Discussion Papers Series 529, School of Economics, University of Queensland, Australia.
    15. Paul, Satya & Shankar, Sriram, 2022. "Regulatory reforms and the efficiency and productivity growth in electricity generation in OECD countries," Energy Economics, Elsevier, vol. 108(C).
    16. Mota, R.L., 2004. "‘Comparing Brazil and USA electricity performance; what was the impact of privatisation?’," Cambridge Working Papers in Economics 0423, Faculty of Economics, University of Cambridge.
    17. Tim Coelli & Denis Lawrence (ed.), 2006. "Performance Measurement and Regulation of Network Utilities," Books, Edward Elgar Publishing, number 3801.
    18. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    19. Coelli, Tim J. & Gautier, Axel & Perelman, Sergio & Saplacan-Pop, Roxana, 2013. "Estimating the cost of improving quality in electricity distribution: A parametric distance function approach," Energy Policy, Elsevier, vol. 53(C), pages 287-297.
    20. Tai-Hsin Huang & Yi-Huang Chiu & Chih-Ying Mao, 2021. "Imposing Regularity Conditions to Measure Banks’ Productivity Changes in Taiwan Using a Stochastic Approach," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 28(2), pages 273-303, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:62:y:2013:i:c:p:207-214. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.