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Unified Efficiency Measurement of Electric Power Supply Companies in China

Author

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  • Jinchao Li

    (School of Economics and Management, North China Electric Power University, Beinong Road 2, Changping District, Beijing 102206, China)

  • Jinying Li

    (Department of Economic Management, North China Electric Power University, Baoding 071003, China)

  • Fengting Zheng

    (School of Economics and Management, North China Electric Power University, Beinong Road 2, Changping District, Beijing 102206, China)

Abstract

This paper measured the economic and unified efficiency of 24 electric power supply companies in China. With the development of a low carbon economy, further requirements for energy-saving and emission-reducing have been put forward for electric power supply companies. In this case, we considered the desirable (good) outputs (e.g., electricity sale amount) and undesirable (bad) outputs (e.g., line loss) in evaluating the performance of power supply companies. We combined the unified efficiency data envelopment analysis (DEA) model and the super-efficiency DEA model to create tge USDEA model, calculating companies’ unified efficiency. The unified efficiency DEA model can easily incorporate both desirable and undesirable outputs in a unified analytical structure. The super-efficiency data envelopment analysis model can make a comparison among various efficient decision making units (DMUs). Our results showed that the electric power supply companies of Hebei, Qinghai, Ningxia, Beijing and Shanghai achieved the highest levels of unified efficiency during the observed period (2003–2010), which differed from the economic efficiency results. The results meant that using unified efficiency to evaluate power supply companies will motivate them to care more about social and environmental benefit besides economic benefit.

Suggested Citation

  • Jinchao Li & Jinying Li & Fengting Zheng, 2014. "Unified Efficiency Measurement of Electric Power Supply Companies in China," Sustainability, MDPI, vol. 6(2), pages 1-15, February.
    • Handle: RePEc:gam:jsusta:v:6:y:2014:i:2:p:779-793:d:32781
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