Total Factor Productivity Analysis of Japanese Electric Power Industry

神奈川県茅ヶ崎市 This paper analyzes the productivity of the electric power industry in Japan. I use total factor productivity (TFP) analysis, induced by translog cost function. First, the paper presents the model of TFP, after introduction. In section 3, I show the results of estimation which was conducted by TSP econometric programs. The performance of electric utilities is not so good during 1978-1987, because all utilities except TEPCO are minus or zero productivity growth. The sources of productivity growth are constructed by two factors : economies of scale and technical change. Electric utilities have a little scale economies but have no or minus rate of techmical change in average, because of existence of X inefficiency and lack of R & D investment. Accordingly, these results may suggest the needs of restructuring for Japanese electric power industry and/or a regulatory reform from rate of return to price-cap regulation