Measuring the Effectiveness of Electricity Distribution in Indonesian Provinces using DEA Bootstrap

Purpose The aims of this research are to measure the efficiency of electricity distribution in 33 Indonesian provinces from 2010 to 2019. Design/methodology/approach The efficiency was measured using a two-step bootstrap analysis, i.e. DEA BCC and DEA Bootstrap. Findings This study finds t...

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Main Authors: Amalia Rahmawati, Setyo Tri Wahyudi, Rachmad Kresna Sakti
Format: Article
Language:English
Published: University of Brawijaya 2023-02-01
Series:Journal of Indonesian Applied Economics
Subjects:
Online Access:https://jiae.ub.ac.id/index.php/jiae/article/view/1237
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author Amalia Rahmawati
Setyo Tri Wahyudi
Rachmad Kresna Sakti
author_facet Amalia Rahmawati
Setyo Tri Wahyudi
Rachmad Kresna Sakti
author_sort Amalia Rahmawati
collection DOAJ
description Purpose The aims of this research are to measure the efficiency of electricity distribution in 33 Indonesian provinces from 2010 to 2019. Design/methodology/approach The efficiency was measured using a two-step bootstrap analysis, i.e. DEA BCC and DEA Bootstrap. Findings This study finds that the efficiency estimation uses DEA BCC overestimate and that the proximity between electrical sources and customers becomes one of the supporting factors for the electricity distribution process and reduces losses. Furthermore, workforce input, nameplate capacity, and network length will be adjusted to customers; electricity demand needs as a component of the electricity distribution process from plants to consumers. Research limitations/implications This study uses the output of the number of customers and the amount of electricity distributed while the input variables use the amount of labor, installed capacity, and length of the distribution network. Originality/value This study uses DEA Bootstrap and the variables used in the study is a combination of variables that have been proven to affect electricity distribution and have never been applied in Indonesia.
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spelling doaj.art-e4d57bf70d124bd480a64acb2510353c2023-09-03T12:20:52ZengUniversity of BrawijayaJournal of Indonesian Applied Economics1907-79472541-53952023-02-01111758910.21776/ub.jiae.2023.011.01.62094Measuring the Effectiveness of Electricity Distribution in Indonesian Provinces using DEA BootstrapAmalia Rahmawati0Setyo Tri Wahyudi1Rachmad Kresna Sakti2Universitas BrawijayaBrawijaya UniversityBrawijaya UniversityPurpose The aims of this research are to measure the efficiency of electricity distribution in 33 Indonesian provinces from 2010 to 2019. Design/methodology/approach The efficiency was measured using a two-step bootstrap analysis, i.e. DEA BCC and DEA Bootstrap. Findings This study finds that the efficiency estimation uses DEA BCC overestimate and that the proximity between electrical sources and customers becomes one of the supporting factors for the electricity distribution process and reduces losses. Furthermore, workforce input, nameplate capacity, and network length will be adjusted to customers; electricity demand needs as a component of the electricity distribution process from plants to consumers. Research limitations/implications This study uses the output of the number of customers and the amount of electricity distributed while the input variables use the amount of labor, installed capacity, and length of the distribution network. Originality/value This study uses DEA Bootstrap and the variables used in the study is a combination of variables that have been proven to affect electricity distribution and have never been applied in Indonesia.https://jiae.ub.ac.id/index.php/jiae/article/view/1237efficiencyelectricity distributiondea bootstrapindonesia
spellingShingle Amalia Rahmawati
Setyo Tri Wahyudi
Rachmad Kresna Sakti
Measuring the Effectiveness of Electricity Distribution in Indonesian Provinces using DEA Bootstrap
Journal of Indonesian Applied Economics
efficiency
electricity distribution
dea bootstrap
indonesia
title Measuring the Effectiveness of Electricity Distribution in Indonesian Provinces using DEA Bootstrap
title_full Measuring the Effectiveness of Electricity Distribution in Indonesian Provinces using DEA Bootstrap
title_fullStr Measuring the Effectiveness of Electricity Distribution in Indonesian Provinces using DEA Bootstrap
title_full_unstemmed Measuring the Effectiveness of Electricity Distribution in Indonesian Provinces using DEA Bootstrap
title_short Measuring the Effectiveness of Electricity Distribution in Indonesian Provinces using DEA Bootstrap
title_sort measuring the effectiveness of electricity distribution in indonesian provinces using dea bootstrap
topic efficiency
electricity distribution
dea bootstrap
indonesia
url https://jiae.ub.ac.id/index.php/jiae/article/view/1237
work_keys_str_mv AT amaliarahmawati measuringtheeffectivenessofelectricitydistributioninindonesianprovincesusingdeabootstrap
AT setyotriwahyudi measuringtheeffectivenessofelectricitydistributioninindonesianprovincesusingdeabootstrap
AT rachmadkresnasakti measuringtheeffectivenessofelectricitydistributioninindonesianprovincesusingdeabootstrap