Capturing heterogeneity in electricity distribution operations: A critical review of latent class modelling

Agrell, Per Joakim; Brea-Solís, Humberto

doi:10.1016/j.enpol.2017.01.046

Cited by 12 publications

(3 citation statements)

References 43 publications

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“…If the homogeneity assumption cannot be satisfied, the evaluated results may be invalid or deflected. Scholars including Atici and Podinovski (2015), , Agrell and Brea-Solis (2017) carried out explorations on the non-homogeneity problem of decision-making units, but failed to realize universal measurement. Due to the restrictions of the external environment, efficiency values of many decision-making units still cannot reach one even though technology, production techniques and processes have improved fully.…”

Section: Summary Of Measures and Methods For Environmental Efficiencymentioning

confidence: 99%

Knowledge accumulation, development potential and efficiency evaluation: an example using the Hainan free trade zone

Wang

Zhao

2019

JKM

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Purpose The establishment of free trade zones (FTZs) is an important experiment as part of the reform and opening up policy. This paper aims to focus on the issue of production efficiency of environmental protection enterprises in FTZs. Changes in the external and internal environments of enterprises can easily lead to changes in the production efficiencies of enterprises. The establishment of FTZs can change the external environment of enterprises. Knowledge accumulation changes the internal environment of enterprises. However, traditional efficiency analysis has usually ignored the internal and external heterogeneity of decision-making units, resulting in the distortion of the evaluation results. Design/methodology/approach This paper examines the relationship between knowledge accumulation and development potential based on financial data of environmental protection enterprises that were listed in Shanghai and Shenzhen A stocks, from 2009 to 2016. Then, through data envelopment analysis cross-efficiency analysis of the listed environmental protection enterprises from external heterogeneity, BP neural network model is set up. Findings The results show that the model set up in this paper is stable and reliable. The paper makes policy suggestions such as stimulating trade inside industry, quickening technological progress and enhancing environmental protection. Originality/value This paper analyzes the economy, environmental protection, science and technology and education to simulate the external environment of enterprises. Based on the experience data from the completion of Shanghai FTZ, this paper predicts the future development potential of Hainan FTZ enterprises.

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Section: Summary Of Measures and Methods For Environmental Efficiencymentioning

confidence: 99%

Knowledge accumulation, development potential and efficiency evaluation: an example using the Hainan free trade zone

Wang

Zhao

2019

JKM

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“…Xiao and Li () proposed an analytic hierarchy process approach to address the problem of nonhomogeneous DMUs. Agrell and Brea‐Solis () classified all DMUs by their technological features and established a homogeneous reference set that evaluates using both parametric and non‐parametric methods. However, the results of such methods were imprecise.…”

Section: Literature Reviewmentioning

confidence: 99%

The global system‐ranking efficiency model and calculating examples with consideration of the nonhomogeneity of decision‐making units

Wang

Sun

2018

Expert Systems

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Data envelopment analyses have been widely used to evaluate the relative efficiency of decision‐making units (DMUs). However, the traditional data envelopment analysis model has not considered the problem of DMUs' nonhomogeneity. If nonhomogeneous DMUs are evaluated under the same production frontier, conclusions may not be precise. For example, some DMUs' input redundancy and output deficit cannot be adjusted as per planning results, which may lead to mistakes in management. This paper loosens the assumption of DMU homogeneity and builds a global system‐ranking efficiency model based on existing literature, which divides the problem of DMUs' nonhomogeneity into external nonhomogeneity and internal homogeneity. Data have been collected from 114 listed enterprises in China's solar power industry, and the analysis results indicate that this paper's model is stable and reliable and can be used as a reference for production managers.

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“…the operational environment in this context is likely to transfer to the firms' inefficiency estimates and penalizes or favors firms and customers (see, e.g., Agrell and Brea-Solís, 2017). It remains, therefore, a challenge for regulatory authorities to implement appropriate benchmarking techniques.…”

Section: Regulatory Benchmarking In Electricity Distributionmentioning

confidence: 99%

Environmental factors in frontier estimation – A Monte Carlo analysis

Nieswand

Seifert

2018

European Journal of Operational Research

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by means of Monte Carlo simulation. We focus on their ability to identify production frontiers and efficiency rankings in the presence of environmental factors. Our simulations match features of real life datasets and cover a wide range of scenarios with variations in sample size, distribution of noise and inefficiency, as well as in distributions, intensity, and number of environmental variables. Our results provide insight in the finite sample properties of the estimators, while also identifying estimatorspecific characteristics. Overall, the latent class approach is found to perform best, although in many cases StoNEZD shows a similar performance. Performance of cDEA is most often inferior.

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Capturing heterogeneity in electricity distribution operations: A critical review of latent class modelling

Cited by 12 publications

References 43 publications

Knowledge accumulation, development potential and efficiency evaluation: an example using the Hainan free trade zone

Knowledge accumulation, development potential and efficiency evaluation: an example using the Hainan free trade zone

The global system‐ranking efficiency model and calculating examples with consideration of the nonhomogeneity of decision‐making units

Environmental factors in frontier estimation – A Monte Carlo analysis

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