Performance assessment of Portuguese wind farms: Ownership and managerial efficiency

This paper analyzes ownership and unobserved managerial ability as factors affecting the performance of a representative sample of Portuguese wind farms by means of frontier models. These farms are ranked according to their technical efficiency during the period 2004–2008 and homogenous and heterogeneous variables are disentangled in the cost function, which leads us to advise the implementation of common policies as well as policies by segments. Economic implications arising from the study are also considered.

Research highlights► Wind farms are heterogeneous displaying distinct ownership and managerial characteristics that affect efficiency. ► Managerial practices has a positive impact on the efficiency. ► Ownership has a positive impact on the efficiency. Large wind farms are more efficient.