An assessment of technical efficiency and cross-efficiency in Taiwan's electricity distribution sector

This paper compares technical efficiency and cross-efficiency scores in the electricity distribution sector in Taiwan through a data envelopment analysis (DEA) framework, We calculate a cross-efficiency assessment to identify the overall efficient and 'false standard' efficient districts to which electricity is distributed and we can use them to cross-check with earlier technical efficiency scores. Using the false standard index (FSI), we can find that if one distributor has a higher magnitude, it can have greater benefits when we shift from peer reviewing to self-reviewing. The results will be of benefit to resource managers and administrators within these districts in their provision of useful guidelines for cost management in the competitive electricity market. (C) 2002 Elsevier Science B.V. All rights reserved.