An assessment of technical efficiency and cross-efficiency in Taiwan's electricity distribution sector

Abstract This paper compares technical efficiency and cross-efficiency scores in the electricity distribution sector in Taiwan through a data envelopment analysis (DEA) framework. We calculate a cross-efficiency assessment to identify the overall efficient and `false standard' efficient districts to which electricity is distributed and we can use them to cross-check with earlier technical efficiency scores. Using the false standard index (FSI), we can find that if one distributor has a higher magnitude, it can have greater benefits when we shift from peer reviewing to self-reviewing. The results will be of benefit to resource managers and administrators within these districts in their provision of useful guidelines for cost management in the competitive electricity market.

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