Analysis of created value added in the electric power sector: a case study of Turkey

Abstract

Proposals advanced for the solution of problems related to the electric power sector, and models developed with that aim, call for a rigorous assessment of present and past data that have accumulated over the years. Detailed analytical information concerning the sector is required at the planning stage. However, data suitable for such analysis and evaluation are frequently either insufficiently available or totally lacking in the economies of developing countries. The present study investigates various aspects of added value created in the Turkish electric power sector in the light of these facts. Trends in net value added with respect to total assets in the sector, with respect to total sales proceeds, and in the functional distribution of value added according to factor income, have been calculated separately for the public and private sectors. For the sake of homogeneity, these analyses have been performed by differentiating between public and private domains within the industry sector as a whole, thus affording the possibility of comparison between the development processes and relationships of these domains. Investigating the particular situation of the Turkish electric power sector can be expected to yield insights that shed light on the sector-related problems of developing countries in general.