Abstract:

This paper analyzes the efficiency and efficiency changes of 57 Turkish natural gas distribution firms in the period 2016-2021 with input-oriented Data Envelopment Analysis (DEA) and Malmquist Total Factor Efficiency (TFP) Index, respectively. The efficiencies of the distribution firms are analyzed using both the aggregated data of all years and the six‐year multi‐period analysis. According to the results of the aggregated model, the technical efficiency, pure technical efficiency, and scale efficiency of the firms on average are %77.4%, %81.2 %, and 95.4%, respectively. Only three of the 10 firms that are technically efficient in the aggregated model are found to be fully efficient in all periods. Natural gas distribution firms are classified as small firms and large firms according to their gas delivery amounts, and the scale efficiency of these firms and the changes in the number of large and small firms with increasing or decreasing returns to scale are examined on a yearly basis. Over the period 2016-2021, total factor productivity decreased by an average 1.8% annually, as a result of an annual average decrease of 1% in technical efficiency and an annual average decrease of 0.8% in technological change.

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