Southern Economic Journal · 2002 · 24 citations · 15 references
AgricultureEconomicsOperations ManagementEnergy EconomicsEnergy PolicyProduction EconomicsAllocative EfficiencyPower Plant OperationPower Plant Performance AnalysisPower Sector EconomicsProductivity AnalysisTechnical EfficiencyCapacity UtilizationCost EfficiencyCost Frontier AnalysisForm Of OwnershipFrontier AnalysisGenerator EfficiencyOperating Performance AnalysisStochastic Frontier Cost Functions
This article provides a detailed analysis of generation plant operating cost efficiency over the period 1988‐1997. I estimate a stochastic frontier cost function together with a model of plant inefficiencies to measure the operating efficiencies of individual plants and identify factors that are associated with variations in plant efficiencies. I find evidence that plant efficiencies are associated with capacity utilization of the plant, the number of plants under utility management, and ownership form. I also find that regulatory restructuring activity in certain states is associated with improvements in plant operating performance.
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