Efficiency of the electricity sector in Mexico 2008-2015: An application of the DEA network model
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 31 January 2020
Issue publication date: 21 May 2020
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