An application of data envelopment analysis to evaluate the efficiency level of the operational cost of Brazilian electricity distribution utilities |
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| Affiliation: | 1. CEFET/RJ – Centro Federal de Educação Tecnológica Celso Suckow da Fonseca – UnED Angra dos Reis/RJ, Brazil;2. UERJ – Universidade do Estado do Rio de Janeiro, Brazil;3. PUC-Rio – Pontifícia Universidade Católica do Rio de Janeiro, Brazil |
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| Abstract: | This paper shows efficiency indices for 60 Brazilian electricity distribution utilities. The efficiency scores are gauged by three DEA models. For both models, these quantities are evaluated under different contexts. One treats with respect to the regulator perspective. The others examine an alternative approach based on cluster analysis and restrictions on factor weights. It is worth pointing out that these developments can reduce the information asymmetry and improve the regulator's skill to compare the performance of the utilities, a fundamental in incentive regulation schemes. |
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| Keywords: | Data envelopment analysis Weight restrictions Influential observations Economic regulation |
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