The analysis of total factor efficiency in the public lignite mining organizations in turkey

Çimen, Selahattin
In recent years, the risks created by the import of energy on the security of energy supply has encouraged countries to utilize local resources to a greater extend, and for many countries including Turkey coal is at the top of the local resources. However, it is not sufficient for countries to have an energy resource itself. Intens competition in today's globalized system requires the resources to be produced and utilized in the most economical manner. The supply of the resources to the market in a competitive way is possible by employing an efficient operation, which is then possible only through the business units producing these resources working efficiently. In this study, the efficiencies of the eight establishments of the Turkish Coal Enterprises (TKI) between 2006 to 2009 were analyzed by using Data Envelopment Analysis (DEA), Super Efficiency (SE) and Malmquist Total Factor Productivity Index (MI) methodologies. For the analyses, three output oriented models were constructed and used: Production Efficiency, Revenue Efficiency and Work Safety Efficiency models. In determining the input and output data used in the analyses, it was benefited from similar studies searched in the literature, knowledge of business and economics and a series of brainstorming of the expert panel consisting of ten high level representatives of the public and private lignite mining companies as well as that of the Turkish Ministry of Energy and Natural Resources. As a part of the analyses, first the production and revenue efficiencies of the establishments were analyzed by using Constant Return to Scale (CRS) and Variable Return to Scale (VRS) methods of DEA. Within this context, efficient and inefficient establishments for the years between 2006 to 2009, and benchmarks for inefficient establishments to move to becoming efficient were determined. Furthermore, for the production and revenue efficiency models, the target values and improvement potentials for the inefficient establishments in CRS analyses to becoming more efficient were calculated by using benchmarks tables and 2009 realized values of inputs and outputs. Second, the efficiency rankings of the efficient establishments among themselves between 2006 to 2009 were determined by using SE methodology. Third, to provide the dynamic analysis of the development of the establishments's efficiency levels in time, the changes of production, revenue and work safety efficiencies of the establishments between 2006 to 2009 were analyzed using the Malmquist Index (MI) methodology. MI analyses included the analysis of the efficiencies in four efficiency components (Technical, Technological, Pure and Scale efficiencies) as well as the calculation of the Total Factor Productivity Indexes of the establishments.


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Citation Formats
S. Çimen, “The analysis of total factor efficiency in the public lignite mining organizations in turkey,” Ph.D. - Doctoral Program, Middle East Technical University, 2011.