ANALYSIS OF DYNAMICS OF THE EFFECTS OF STRUCTURAL REFORM ON THE PRODUCTIVITY IN ELECTRICITY INDUSTRY OF IRAN

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SADEGHI SHAHDANI MEHDI; TAVAKKOLNIA MOHAMMAD REZA

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Journal Paper

Paper Information

Journal: Journal of Economic Research and Policies Year:2011 | Volume:19 | Issue:60 Page(s): 59-80

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Title

ANALYSIS OF DYNAMICS OF THE EFFECTS OF STRUCTURAL REFORM ON THE PRODUCTIVITY IN ELECTRICITY INDUSTRY OF IRAN

Author(s)

SADEGHI SHAHDANI MEHDI | TAVAKKOLNIA MOHAMMAD REZA | Issue Writer Certificate

Keywords

ELECTRICITY REFORMQ2

VERTICAL INTEGRATION DATA ENVELOPE ANALYSISQ2

MALMQUIST INDEXQ3

Abstract

Electricity industry in Iran has passed four evolutionary stages: regulation, deregulation, restructuring and privatization. Regulation increased the directorial and proprietorship role of the government. Deregulation changed the laws which had helped the continuity of the government role in electricity industry and therefore provided a legal framework for the private sector to contribute to power industry. Restructuring, disintegrated the vertical monopoly into production, transmission and distribution sectors. Privatization resulted in transferring the ownership of electricity units to non-governmental sectors. This paper tries to explain the effects of the Iranian electricity structural reform on the productivity of electricity industry by using DEA and MALMQUIST INDEX approaches. Results confirm that productivity has been improved, and show that the change in technical efficiency has contributed more than technological development to this process.

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