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Incorporating Undesirable Outputs into Malmquist TFP Index: Environmental Performance Growth of Chinese Coal-Fired Power Plants

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Author Info
Yang, H.
Pollitt, M.

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Abstract

In this article we examine the effects of undesirable outputs on the Malmquist TFP indices. Our empirical work uses an unbalanced panel which covers 796 utility and non-utility coal-fired power plants in China during 1996-2002. In order to meet the requirement of a balanced panel for calculating the Malmquist indices, an innovative fake unit approach has been introduced. Our final results show that (1) the growth of the Chinese electricity heavily depends upon an increase of resource input; and (2) huge potential remains with regards to the efficiency improvement and emissions control in Chinese coal-fired power plants.

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Publisher Info
Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0740.

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Length: 24
Date of creation: 2007
Date of revision:
Handle: RePEc:cam:camdae:0740

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Web page: http://www.econ.cam.ac.uk/index.htm

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Related research
Keywords: Malmquist indicies; total factor productivity; Chinese electricity; power plant efficiency.;

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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  1. Yang, H. & Pollitt, M., 2007. "Incorporating Both Undesirable Outputs and Uncontrollable Variables into DEA: the Performance of Chinese Coal-Fired Power Plants," Cambridge Working Papers in Economics 0733, Faculty of Economics, University of Cambridge. [Downloadable!]
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