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Overcoming Data Limitations in Nonparametric Benchmarking: Applying PCA-DEA to Natural Gas Transmission

Referierte Aufsätze Web of Science

Maria Nieswand, Astrid Cullmann, Anne Neumann

In: Review of Network Economics 9 (2010), 2, Article 4


We empirically demonstrate a practical approach of efficiency evaluation with limited data availability in some regulated industries. We apply PCA-DEA for radial efficiency measurement to U.S. natural gas transmission companies in 2007. PCA-DEA reduces dimensions of the optimization problem while maintaining most of the variation in the original data. Our results suggest that the methodology reduces the probability of over-estimation of individual firm-specific performance.

Astrid Cullmann

Research Associate in the Energy, Transportation, Environment Department