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Comparing Like with Like in Productivity Studies: Apples, Oranges and Electricity *
Author(s) -
ZEITSCH JOHN,
LAWRENCE DENIS,
SALERIAN JOHN
Publication year - 1994
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1994.tb01835.x
Subject(s) - productivity , electricity , mains electricity , agricultural economics , economics , total factor productivity , business , environmental economics , operations management , natural resource economics , engineering , macroeconomics , voltage , electrical engineering
A methodology is developed to incorporate operating environment variables in the measurement of Total Factor Productivity. When no account is taken of operating environments, the Queensland Electricity Supply Industry (QES1) was found to be 13 per cent more productive than the New South Wales Electricity Supply Industry (NSWES1). However, when performance is adjusted for the relatively large area serviced by the QESI, the productivity advantage it has over the NSWESI expands to about 20 per cent.