The Impact of Industrial Reform on the Efficiency of the Korean Electricity Sector

다국어 초록 (Multilingual Abstract)

This paper examines the effect of electricity market reforms on the efficiency performance of the Korean electricity industry. By using survey data, due to the limited availability of firm-level data, this paper evaluates the efficiency impact of reform by using the fuzzy set theory that reflects the policy uncertainty of the Korean electricity sector. In particular, this theory is used to construct a precise metric of the importance of each indicator based on a survey of industry participants and scholars; the theory helps construct a relative weight of the importance of such indicators by permitting the conversion of uncertain subjective evaluations into practicable measurements. We then use the relative importance of each indicator resulting from this exercise to construct a weighted sum of an efficiency index for the post reform years of 2001-2008. We normalize the index so that the 2001 value is 1 and find that the value of the index has generally risen over the years to reach a value of 1.04 to 1.05 by the end of the study period. The overall results show that generation cost is the most important factor in efficiency-related decision-making processes and that efficiency values for the whole period tended to increase.

참고문헌 (Reference)

1 안경애, "한국 생명보험 산업의 DDF 생산효율성 분석" 한국생산성학회 21 (21): 123-151, 2007

2 주희천, "푸리에 신축함수를 이용한 국내 전력산업의 송배전부문에 대한 규모의 경제성 분석" 한국생산성학회 24 (24): 5-29, 2010

3 최문경, "외환위기 이후 은행산업의 생산성 변화" 한국생산성학회 20 (20): 23-49, 2006

4 Moon, J.-H, "Use of fuzzy set theory in the aggregation of expert judgements" 26 (26): 461-469, 1999

5 Han, S. -Y., "The role of the four electric power sectors in the Korean national economy: an input–output analysis" 32 : 1531-1543, 2004

6 Berry, T., "The renewable portfolio standard: design considerations and an implementation survey" 29 (29): 263-277, 2001

7 Tsaur, S. -H., "The evaluation of airline service quality by fuzzy MCDM" 23 : 107-115, 2002

8 Al-Najjar, B, "Selecting the most efficient maintenance approach using multiple criteria decision making" 84 : 85-100, 2003

9 Santiago M., "Risk evaluation in Colombian electricity market using fuzzy logic" 29 : 999-1009, 2007

10 Wiser, R., "Renewable energy policy and electricity restructuring : a California case study" 26 (26): 465-475, 1998

11 Voogt, M., "Renewable electricity in a liberalized market—the concept of green certificates" 11 (11): 65-80, 2000

12 Liou, T. -S., "Ranking fuzzy numbers with integral value" 50 : 247-255, 1992

13 Buckley, J. J., "Ranking alternatives using fuzzy numbers" 15 (15): 21-31, 1985

14 Mankiw, N. G., "Principle of economics, 2nd ed" Harcourt College Publishers 152-158, 2001

15 Lo, A. Y. H., "Merging electricity and environment politics of Hong Kong : Identifying the barriers from the ways that sustainability is defined" 36 (36): 1521-1537, 2008

16 Korea Power Exchange (KPX), "Members"

17 Mansur, E. T., "Measuring welfare in restructured electricity market" 90 (90): 369-386, 2008

18 Borenstein, S., "Measuring market inefficiencies in California's Restructured Wholesale Electricity Market" 92 (92): 1376-1405, 2002

19 Korea Electric Power Corporation (KEPCO), "Korean electricity statistics in 2009" 2009

20 Korea Electric Power Corporation (KEPCO), "KEPCO administration statistics in 2009 (in Korean)" 2009

21 Zadeh, L. A., "Fuzzy sets" 8 (8): 338-353, 1965

22 Tran, L. T., "Environmental assessment" 29 (29): 845-859, 2002

23 Center of the Advanced Energy Market (CAEM), "Electricity retail energy deregulation index 2002"

24 Von Hirschhausen, C., "Efficiency analysis of German electricity distribution utilities-non-parametric and parametric tests" 38 : 2253-2566, 2006

25 Lowry M. N., "Econometric Benchmarking of Cost Performance : The Case of U. S. Power Distributors" 26 (26): 75-92, 2005

26 Liang Z., "Decision support for choice optimal power generation projects: Fuzzy comprehensive evaluation model based on the electricity market" 34 : 3359-3364, 2006

27 Ministry of Commerce, Industry and Energy, "Basic Plan for Restructuring of the Electricity Supply Industry" Ministry of Commerce, Industry and Energy 1999

28 Sohn, K. -Y., "Assimilation of public opinions in nuclear decision-making using risk perception" 28 (28): 553-563, 2001

29 Vanegas, L. V, "Application of new fuzzy-weighted average method to engineering design evaluation" 39 (39): 1147-1162, 2001

30 Porez, E., "Application of advanced digital signal processing tools for analysis of voltage events in power systems" 46 (46): 211-224, 2009

31 Knittel, C. R., "Alternative regulatory methods and firm efficiency : stochastic Frontier evidence from the U. S. Electricity Industry" 84 (84): 530-540, 2002

32 Büyüközkan, G, "A fuzzy-logic-based- decision-making approach for new product development" 90 (90): 27-45, 2004

33 Moon, H.-S., "A fuzzy set theory approach to national composite S&T indices" 64 (64): 67-83, 2005

34 Vanegas, L. V, "A fuzzy quality function deployment(FQFD)model for deriving optimum targets" 39 (39): 99-120, 2001

35 Wang, J., "A fuzzy outranking method for conceptual design evaluation" 35 (35): 995-1010, 1997

36 Chang, P. L, "A fuzzy multi-criteria decision making method for technology transfer strategy selection in biotechnology" 63 (63): 131-139, 1994