scholarly journals Technical efficiency of thermal power units through a stochastic frontier

DYNA ◽  
2015 ◽  
Vol 82 (191) ◽  
pp. 63-68 ◽  
Author(s):  
José Antonio Marmolejo-Saucedo ◽  
Román Rodríguez-Aguilar ◽  
Miguel Gastón Cedillo-Campos ◽  
María Soledad Salazar-Martínez

<p class="ADYNAAbstrac"><span lang="EN-US">This work presents a model to obtain a stochastic frontier production function of a Mexican power generation company. The stochastic frontier allows us to evaluate the technical efficiency of an energy producer according of the level of inputs. Electricity generation based on thermal generation is highly expensive due to operational inefficiency of thermal power plants. At the moment, in Mexico, technical efficiency of thermal power units has not been studied for the national electricity system. Therefore, in order to know the productivity levels of thermal generation, an empirical application of the stochastic frontier model is obtained using a panel data of thermoelectric units from the Mexican electricity system for the 2009-2013 period.</span></p>

2002 ◽  
Vol 27 (4) ◽  
pp. 57-68 ◽  
Author(s):  
K R Shanmugam ◽  
Praveen Kulshreshtha

Thermal power industry plays a leading role in power generation in India. This study employs the stochastic frontier production function methodology to measure the technical efficiency of Indian thermal power plants using latest available panel data. Efficiency varies widely across firms and regions and is timevariant. Mean technical efficiency increased from 79 per cent in 1994-95 to 85 per cent in 1996-97 which indicates that there is scope for raising power production without employing additional resources. The findings can aid policy-makers and international agencies in adopting appropriate strategies to improve power generation in India.


Author(s):  
Nurhayatin Nufus

This research  aims  to analyses  factors  influence  on production  and  resources  allocation  of soybeans  by farmer  at  West Lombok.  Production  function  was estimated  from survey data and technical  efficiency  was used to indicate  farm management  level  through maximum  likelihood,  which  was transformed  into frontier stochastic  production  function.  The land  size,  fertilizer  (urea and  TSP), labor  and pesticide  influence  the production  of soybean  at site.  The technical efficciency  level of Soybean fann was 95,6 percent   The  usage of TSP and pesticide reached allocative efficiency while urea and seeds were al/ocative efficiency yet Key words:  technical  effICiency, allocative  effICiency, and stochastic  frontier  production  function.


Author(s):  
Ngatindriatun Ngatindriatun ◽  
Hertiana Ikasari

Batik is known since 17th century. In 2009, UNESCO took batik as the world heritage. Likewise, Batik Semarang. Batik Semarang is unpopular than other batik’s products on Central Java. Their productivity is on small scale and only for environment surroundings. The small productivity causes the high price on their product selling. The aims of this research are to estimate the function of production and technical efficiency of batik Semarang. Sample is 67 owners of small scale batik Semarang industry. Analysis instrument is Stochastic Frontier Production Function. The measuring of production efficiency are material, support material, labor force, instruments, kerosene, firewood, and large of trade location. The result shows that free variable is found significant and have an appropriate signal. Other result shows that technical efficiency of batik Semarang industry is 88, 9%


2019 ◽  
Vol 17 (1) ◽  
pp. 92-98
Author(s):  
Mezamun -Ara Mukta ◽  
Md. Akhtaruzzaman Khan ◽  
Md Rais Uddin Mian ◽  
Rahat Ahmed Juice

Tilapia (Oreochromis niloticus) is known as ‘fish for the poor’ due to its low market price. However, the question remains about the sustainability of this species because of high production cost and lower market price.  Therefore, this study examined the financial profitability, technical efficiency and tried to find out the policy options for increasing the financial benefit of fish farmers. A total of 250 tilapia fish farmers were selected from seven tilapia producing areas of Bangladesh. To fulfill the objectives of this study, profitability, stochastic frontier production function, and sensitivity analysis were employed.  Considering all selected farmers, tilapia farming found a profitable business where undiscounted BCR was only1.11. Among all cost items, only feed consists of 70 percent of the total production cost.  The mean technical efficiency level of tilapia fish farmers was 85 percent, implies that by operating at full technical efficiency levels, tilapia yield could be increased from the current level of 20.98 to 24.13 tons per hectare and efficient farmers found more productive than inefficient farmers. Farmer’s financial benefit can be increased by reducing the feed price, decreasing FCR or increasing the output price. Feed price reduction or enhance the quality of feed could be effective policy options for sustaining the tilapia farming. J. Bangladesh Agril. Univ. 17(1): 92–98, March 2019


2019 ◽  
Vol 11 (19) ◽  
pp. 5225
Author(s):  
Furong Chen ◽  
Yifu Zhao

This paper investigated the determinants, especially labor transformation, and differences of technical efficiency between main and non-main grain-producing area in China based on a panel data from 30 provinces in the period of 2001–2017. Stochastic frontier production function was used to estimate the level of technical efficiency and the marginal productivity of different inputs. The estimated results showed that land is the most important factor to improve China’s grain output, followed by fertilizers, labor, and machinery inputs. There was a significant 4.6 percent gap of production efficiency between main and non-main producing provinces. Influence of rural labor transformation was confirmed to be positive to improve technical efficiency.


2012 ◽  
Vol 37 (1) ◽  
pp. 171-178 ◽  
Author(s):  
MA Baree

An attempt was made to determine the overall farm-specific technical efficiency or inefficiency of onion farms of Bangladesh. Farm-level data were used for the estimation of the parameters of Cobb-Douglas stochastic frontier production function. The model for technical inefficiency effects in the stochastic frontier included age, experience, education, and farm size. The elasticity of output with respect to land, labour, and capital cost was estimated to be positive values of 0.3026, 0.0718, and 0.0442, respectively, and also significant. With respect to seed and irrigation, it was found to be insignificant with negative values of 0.0045 and 0.0007. It indicates that per hectare yield of onion decreases if the amount of seed and irrigation hour increase. The coefficients of age, experience, and farm size were significant with expected negative signs, which means that the inefficiency effects in onion production decreases with increase in age, experience, and farm size. The technical efficiency of onion farms varied from 58% to 99% with mean value of 83%. It denotes that there is a scope to increase output per hectare of onion farm by 17% through the efficient use of production  technology without incurring any additional costs. DOI: http://dx.doi.org/10.3329/bjar.v37i1.11191 Bangladesh J. Agril. Res. 37(1): 171-178, March 2012  


2012 ◽  
Vol 14 (3) ◽  
pp. 317-338 ◽  
Author(s):  
M. Abdul Majid Ikram ◽  
Andry Prasmuko ◽  
Donni Fajar Anugerah ◽  
Ina Nurmalia Kurniati

This paper analyzes the contributon of primary input; capital anda labor, on sectoral performance in Indonesia. The analysis cover sall sectors both in national and regional level, and also the dynamic of input efficiency across period. Using stochastic frontier production function approach, this paper found the aggregate share of capital is 0.20 and 0.34 for labor; conforming the dominance of labor. The highest three technical efficiency is Mining sector (88.65%), Manufacture (70.47%) and Financial (65.93%), while the lowest one is Electric, Gas and Water (25.38%).Keywords: efficiency, stochastic frontier, productivity, Indonesia.JEL Classification: D24, J24, O18


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