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ID125711
Title ProperEstimating and decomposing productivity growth of the electricity generation industry in Malaysia
Other Title Informationa stochastic frontier analysis
LanguageENG
AuthorSee, Kok Fong ;  Coelli, Tim
Publication2013.
Summary / Abstract (Note)This study examines the total factor productivity (TFP) growth of the Malaysian electricity generation industry over the 1998 to 2005 period. The stochastic frontier analysis (SFA) approach is used to measure TFP change and decompose TFP growth into efficiency change and technical progress. We find that it achieved average annual TFP growth of 2.34%, with technical change contributing the most to the TFP growth over the eight year period. We hence hypothesise that the new power plants with their newer capital-embodied technologies commencing during the sample period are likely to be the main reason for this strong technical change. In addition, it is also noted that this estimate for the Malaysian electricity generation industry is larger than the estimate obtained for the electricity sector as a whole, where we obtain 1.34% per year for a comparable period.
`In' analytical NoteEnergy Policy Vol.62; Nov 2013: p.207-214
Journal SourceEnergy Policy Vol.62; Nov 2013: p.207-214
Key WordsProductivity Growth ;  Electric Utilities ;  Malaysia