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Measuring Efficiency and Productivity Change in the Turkish Electricity Distribution Sector

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Applied Operations Research and Financial Modelling in Energy
  • The original version of this chapter was revised: Table 1 was inadvertently split into two tables (table 1 and table 2), this has now been combined as Table 1. The correction to this chapter is available at https://doi.org/10.1007/978-3-030-84981-8_13

Abstract

This chapter measures the efficiency levels of electricity distribution companies (EDCs) in Turkey by utilising Data Envelopment Analysis (DEA) method and determines how productivities have changed via the Malmquist Productivity Indices (MPI) in recent years. The study additionally focuses on introducing the potential environmental factors’ effect on efficiency based on a Tobit Analysis. Furthermore, the minimum optimal operating scale and resources that are key in efficiency have been analysed and evaluated. For all these analyses, panel data for the Turkish electricity distribution sector, consisting of 21 EDCs from 2015 to 2019, are utilised. The technical and scale efficiency scores for five years and the technological and efficiency changes every two years within this period have been calculated and presented. The results mainly demonstrate that the average efficiency scores of EDCs decreased slightly in the analysis period. While reaching their efficiency scores, the EDCs assigned the majority of weights to transformer capacity as input and number of employees as output. Additionally, our findings assert that the factors of energy loss and commercial and industrial electricity delivered affect efficiencies significantly, while the factors related to the development and urbanisation status of the regions do not.

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Change history

  • 23 December 2021

    In the original version of the chapter, table 1 was inadvertently split into two tables (table 1 and table 2). This has now been rectified and the subsequent tables have been renumbered.

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Author information

Authors and Affiliations

  1. Faculty of Political Sciences, Ankara University, Cemal Gursel Str., 06590, Cebeci/Ankara, Turkey

    Yetkin Cinar

  2. Faculty of Economics and Administrative Sciences, Nevsehir Haci Bektas Veli University, Zubeyde Hanim Str., 50100, Nevsehir, Turkey

    Tekiner Kaya

Authors
  1. Yetkin Cinar
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  2. Tekiner Kaya
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Correspondence to Yetkin Cinar .

Editor information

Editors and Affiliations

  1. VU University Amsterdam, Amsterdam, The Netherlands

    André B. Dorsman

  2. Hacettepe University, Ankara, Turkey

    Kazim Baris Atici

  3. Hacettepe University, Ankara, Turkey

    Aydin Ulucan

  4. Hacettepe University, Ankara, Turkey

    Mehmet Baha Karan

Appendices

Appendix 1

See Table 7.

Table 7 Individual efficiency scores and returns to scale measures
Full size table

Appendix 2

See Table 8.

Table 8 Reference sets for inefficient EDCs
Full size table

Appendix 3

See Table 9.

Table 9 EDC based average MPI changes
Full size table

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Cinar, Y., Kaya, T. (2021). Measuring Efficiency and Productivity Change in the Turkish Electricity Distribution Sector. In: Dorsman, A.B., Atici, K.B., Ulucan, A., Karan, M.B. (eds) Applied Operations Research and Financial Modelling in Energy. Springer, Cham. https://doi.org/10.1007/978-3-030-84981-8_5

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