Effects of Climate Elements on the Efficiency of European Electricity Transmission Operators: a DEA Approach
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- The Transportation System Operators have the essential roles of, as their name states it, transporting the electricity with high voltage lines from the production plants to the distribution grids. IN 2009, The European commission passed a directive un bundling these TSOs and setting up Regulatory agencies. Through regulation the National Regulation Agencies set prices for a regulatory regime. To do so the NRA need to bench mark the efficiencies of the TSO in their market. The selection of input and output is a very important step. There is a need also to include external element to reflect the real world in which the TSOs operate. While climatic changes are happening and the extremes we face tend to augment every year, no NRA is using climate a factor. In this thesis, with the use of a two stage DEA an attempt is made at seeing if some climatic parameters influence the efficiency of the TSO.