Assessing Productivity Performance Of Regional Electric Cooperatives In The Philippines

Abstract

This paper examines the productivity performance of private electric cooperatives (ECs) in the Philippines. Our sample draws on 15 regions in the Philippines, with a total of 117 cooperatives over the period 1999-2003. Data envelopment analysis (DEA) models are used to calculate productive performance of our panel sample. Our findings suggest that regional electric cooperatives (RECs) are technologically-oriented, yet, show a declining efficiency change of 0.1 percent annually. In this case, the electricity industry across regions may adopt a weighted combination of electricity-based technologies and supported with policies of autonomy without losing the service-oriented culture. Thus, productivity is driven more by technological innovations in the industry than managerial efficiency. This is a new empirical contribution to the electricity productivity literature.