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Formative evaluation of electricity distribution utilities using data envelopment analysis

dc.contributor.authorSantos, Sérgio Pereira dos
dc.contributor.authorAmado, Carla
dc.contributor.authorRosado, Joaquim
dc.date.accessioned2014-03-20T14:31:06Z
dc.date.available2014-03-20T14:31:06Z
dc.date.issued2011
dc.description.abstractThe use of Data Envelopment Analysis (DEA) in the electricity distribution sector has been prolific in the number of papers published in research journals. However, while numerous studies have been documented, they have mostly been summative. Their aim has been predominantly descriptive and classificatory. This paper argues that evaluations of a formative nature are more effective than summative studies in promoting a better understanding of the structures and processes of electricity distribution utilities and, consequently, are more appropriate to contribute to performance improvement. To illustrate the use of DEA for formative evaluation, and highlight some of the difficulties of using DEA in practice, this paper compares the cost-efficiency of the Portuguese electricity distribution companies from 2002 to 2006. A dynamic analysis using Malmquist Indices is also conducted in order to evaluate the changes in productivity over this period. Our analysis shows that the application of DEA for formative purposes meets some difficulties. In particular it shows that while the modelling of productivity/efficiency scores using DEA is relatively straightforward, it is comparatively more difficult to develop models that are economically valid and that produce results with face validity. On the basis of the insights derived from this analysis, the paper provides some recommendations regarding the successful application of DEA for performance improvement.por
dc.identifier.doihttp://dx.doi.org/10.1057/jors.2010.66
dc.identifier.issn0160-5682
dc.identifier.otherAUT: SSA00141; CAM00958;
dc.identifier.urihttp://hdl.handle.net/10400.1/3687
dc.language.isoengpor
dc.peerreviewedyespor
dc.publisherPalgrave Macmillanpor
dc.relation.publisherversionhttp://www.palgrave-journals.com/jors/journal/v62/n7/full/jors201066a.htmlpor
dc.subjectData envelopment analysispor
dc.subjectElectricity distributionpor
dc.subjectPerformance measurementpor
dc.titleFormative evaluation of electricity distribution utilities using data envelopment analysispor
dc.typejournal article
dspace.entity.typePublication
oaire.citation.endPage1319por
oaire.citation.startPage1298por
oaire.citation.titleJournal of the Operational Research Societypor
oaire.citation.volume62por
person.familyNamePereira dos Santos
person.familyNameAmado
person.givenNameSérgio
person.givenNameCarla
person.identifier.ciencia-idD81F-2E2A-9046
person.identifier.ciencia-id2919-AB70-B8D8
person.identifier.orcid0000-0001-9811-3799
person.identifier.orcid0000-0001-6944-5129
person.identifier.ridA-9854-2011
person.identifier.scopus-author-id26534002400
rcaap.rightsopenAccesspor
rcaap.typearticlepor
relation.isAuthorOfPublicationebe16fd2-b979-4745-a429-026430cc8742
relation.isAuthorOfPublication8c2831d4-918c-486f-b5da-f41fe3f53eff
relation.isAuthorOfPublication.latestForDiscoveryebe16fd2-b979-4745-a429-026430cc8742

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