Pillai N., Vijayamohanan (2019): Measuring Energy Efficiency: An Application of Data Envelopment Analysis to Power Sector in Kerala. Published in:

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Abstract
Traditionally, there are two basically reciprocal energy efficiency Indicators: one, in terms of energy intensity, that is, energy use per unit of activity output, and the other, in terms of energy productivity, that is, activity output per unit of energy use. The enquiry that has proceeded from the problems associated with this method of a single energy input factor in terms of productivity has led to multifactor productivity analysis. We have here two approaches: parametric and nonparametric. Parametric approach famously includes two methods: the erstwhile popular total factor energy productivity analysis and the currently fanciful stochastic frontier production function analysis; The nonparametric approach is popularly represented by data envelopment analysis. The present paper is an attempt to measure efficiency in electrical energy consumption in Kerala, India. We apply the nonparametric mathematical programming method of data envelopment analysis of the multifactor productivity approach, and estimate the efficiency measures under the two scale assumptions of constant returns to scale (CRS) and variable returns to scale (VRS); the latter includes both increasing (IRS) and decreasing returns to scale (DRS). Scale efficiency measures are also given to find out whether a firm is operating at its optimal size or not, implying degrees of capacity utilization.
Item Type:  MPRA Paper 

Original Title:  Measuring Energy Efficiency: An Application of Data Envelopment Analysis to Power Sector in Kerala 
Language:  English 
Keywords:  Energy efficiency, Kerala, Power sector, Data envelopment, Technical efficiency. 
Subjects:  C  Mathematical and Quantitative Methods > C1  Econometric and Statistical Methods and Methodology: General > C13  Estimation: General C  Mathematical and Quantitative Methods > C5  Econometric Modeling > C51  Model Construction and Estimation Q  Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4  Energy 
Item ID:  101945 
Depositing User:  Vijayamohanan Pillai N 
Date Deposited:  27 Jul 2020 14:10 
Last Modified:  27 Jul 2020 14:10 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/101945 