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Efficiency of the electricity sector in Mexico 2008-2015: An application of the DEA network model

César Lenin Navarro-Chávez (Economic and Business Research Institute, Universidad Michoacana de San Nicolás de Hidalgo, Morelia, Mexico)
Odette V. Delfín-Ortega (Economic and Business Research Institute, Universidad Michoacana de San Nicolás de Hidalgo, Morelia, Mexico)
Atzimba Díaz-Pulido (Economic and Business Research Institute, Universidad Michoacana de San Nicolás de Hidalgo, Morelia, Mexico)

International Journal of Energy Sector Management

ISSN: 1750-6220

Article publication date: 31 January 2020

Issue publication date: 21 May 2020

137

Abstract

Purpose

The purpose of this paper is to determine the level of efficiency in the Mexico electricity industry during the 2008-2015 period.

Design/methodology/approach

A data envelopment analysis (DEA) network model is proposed, where technical efficiency is calculated. A factorial analysis using the principal components method was carried out first. Later, latent dimensions were calculated through the variance criterion and sedimentation graph, where four components were presented. After performing factor rotation, the nodes were grouped: generation, transmission, distribution and sales. It proceeded later to structure a DEA network model.

Findings

From the calculations made, the most efficient node was the transmission, while the North Gulf and East Center divisions were the only efficient.

Research limitations/implications

The limitations presented in this study were data collection.

Practical implications

The implications that were observed were that through the results obtained, proposals can be made to the Mexican electricity sector to improve each of the nodes, and have a better operation and reduce energy losses.

Social implications

The social impact of this type of study is that based on the results obtained, they present the basis for improving energy policy and users can have a better service that has better quality and coverage.

Originality/value

The originality of this study consists in the use of two methodologies, factor analysis methodology and DEA network model.

Keywords

Citation

Navarro-Chávez, C.L., Delfín-Ortega, O.V. and Díaz-Pulido, A. (2020), "Efficiency of the electricity sector in Mexico 2008-2015: An application of the DEA network model", International Journal of Energy Sector Management, Vol. 14 No. 4, pp. 683-706. https://doi.org/10.1108/IJESM-03-2019-0019

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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