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Empirical study on the technical efficiency and total factor productivity of power industry: Evidence from Chinese provinces

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  • Wei, Wei
  • Han, Ying
  • Abedin, Mohammad Zoynul
  • Ma, Jingjing
  • Chai, Shanglei

Abstract

With government policy reviews of renewable energy, environmental regulation and climate change, the energy-based power industry has received much attention. To explore the inherent characteristics of technical efficiency and total factor productivity in Chinese power industry, we use DEA-BCC and DEA-Malmquist models to exam the regional disparities of energy efficiency in 30 provinces based on the Yearbook database from 1998 to 2017. The market technical efficiency and environmental technical efficiency were compared from the power generation link, the power network link, and the comprehensive performance, respectively. Although the empirical results indicate that the Chinese power industry presents the development pattern of “emphasizing market over environment”, the green technology and renewable energy are the waves of future and the practices of environmental regulations have borne some fruit. In addition, the power market reform in the power industry works out but lacks long-term incentives for continuous progress. The research conclusions can reveal the complex strong correlation system in power industry and help to make targeted efficiency promotion strategies, which is in line with other energy policy goals.

Suggested Citation

  • Wei, Wei & Han, Ying & Abedin, Mohammad Zoynul & Ma, Jingjing & Chai, Shanglei, 2023. "Empirical study on the technical efficiency and total factor productivity of power industry: Evidence from Chinese provinces," Energy Economics, Elsevier, vol. 128(C).
    • Handle: RePEc:eee:eneeco:v:128:y:2023:i:c:s014098832300659x
    DOI: 10.1016/j.eneco.2023.107161
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