Analysis of the Productivity Dynamics of Electricity Distribution Regions in Ghana

Abstract

Electrical power distribution is the most important division in the power supply chain. However, its sustainability in terms of efficiency is very important for the growth of every country. This main objective of the paper is to assess the productivity dynamics of this process using the data envelopment analysis (DEA) methodology to analyse the effectiveness of the electricity distribution regions (EDRs) over a period of 7 years. The paper adapts the biennial Malmquist productivity index by infusing it with the slacks-based measure (SBM) to assess the productivity dynamics of EDRs in Ghana. Productivity dynamics were assessed by decomposing the SBM-BMPI productivity scores into the efficiency, technology, and scale change. It was discovered that the productivity of EDRs in Ghana progressed by 16.23% per annum over the sample period. Productivity was driven mainly by technological change and not the efficiency changes and scale changes.