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oai:grips.repo.nii.ac.jp:00000962 2023-11-20T09:00:05Z 1:43

Multi-division efficiency evaluation of the US electric power companies: An application of the Weighted Slacks-Based Measure TSUTSUI, Miki GOTO, Mika metadata only access WSBM Divisional efficiency Vertical integration Electric power company Prior to the 1990s, the electric power industry was highly regulated in worldwide bases. Under a new policy of open markets and introducing competition into the industry, efficient management has become a requirement for these companies. The purpose of this study is to examine the divisional efficiency of multi-functioned vertically integrated companies in order to optimize overall management efficiency. For this purpose, cost data of each division is applied as input to the Slacks-Based Measure(SBM) model, which provides an efficiency index for each input factor based on slacks as well as to provide an efficiency index for overall management. Furthermore, considering the important role of cost share structure, this study introduces a slightly modified SBM, namely, the Weighted SBM (WSBM), which directly incorporates weight among inputs into the objective function. The results reveal that the generation division has a significant influence on overall cost, while the impact of the other four divisions is limited and reflects their cost shares. GRIPS Policy Research Center 2015-02-25 eng technical report https://grips.repo.nii.ac.jp/records/962 GRIPS Discussion Papers I-2006-0006