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Measures to improve the performance of China’s thermal power industry in view of cost efficiency

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  • Wang, Yi-Shu
  • Xie, Bai-Chen
  • Shang, Li-Feng
  • Li, Wen-Hua

Abstract

The heavy losses of China’s thermal power industry have attracted lots of attention. Besides the adjustment of power price, how to improve its poor performance becomes an important issue. Combining the cost Malmquist with the Luenberger index, this paper introduces a new method to measure the cost efficiencies of China’s 30 provinces’ thermal power industries with carbon emissions considered. Furthermore, we quantify the influence of input price changes on the price effect (PE) using panel data regression. The empirical results indicate that: (1) combining dynamic efficiency with static efficiency, the results will be more objective; (2) compared with previous emphasis on adjusting external factors, the future policy reforms should incentivize corporations to improve their management; and (3) external fuel price change is not the direct reason for cost efficiency fluctuation, and the thermal power industry should make more efforts to improve their technical efficiency.

Suggested Citation

  • Wang, Yi-Shu & Xie, Bai-Chen & Shang, Li-Feng & Li, Wen-Hua, 2013. "Measures to improve the performance of China’s thermal power industry in view of cost efficiency," Applied Energy, Elsevier, vol. 112(C), pages 1078-1086.
  • Handle: RePEc:eee:appene:v:112:y:2013:i:c:p:1078-1086
    DOI: 10.1016/j.apenergy.2013.01.037
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    Citations

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    Cited by:

    1. Seifert, Stefan, 2015. "Productivity Growth and its Sources - A StoNED Metafrontier Analyis of the German Electricity Generating Sector," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112975, Verein für Socialpolitik / German Economic Association.
    2. Li, Ming-Jia & Tao, Wen-Quan, 2017. "Review of methodologies and polices for evaluation of energy efficiency in high energy-consuming industry," Applied Energy, Elsevier, vol. 187(C), pages 203-215.
    3. Li, Ke & Lin, Boqiang, 2016. "Impact of energy conservation policies on the green productivity in China’s manufacturing sector: Evidence from a three-stage DEA model," Applied Energy, Elsevier, vol. 168(C), pages 351-363.
    4. Duan, Na & Guo, Jun-Peng & Xie, Bai-Chen, 2016. "Is there a difference between the energy and CO2 emission performance for China’s thermal power industry? A bootstrapped directional distance function approach," Applied Energy, Elsevier, vol. 162(C), pages 1552-1563.
    5. Wang, Ke & Wang, Shanshan & Liu, Lei & Yue, Hui & Zhang, Ruiqin & Tang, Xiaoyan, 2016. "Environmental co-benefits of energy efficiency improvement in coal-fired power sector: A case study of Henan Province, China," Applied Energy, Elsevier, vol. 184(C), pages 810-819.
    6. Wang, Yan & Shen, Neng, 2016. "Environmental regulation and environmental productivity: The case of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 758-766.
    7. Hu, Zhuangli & Zhang, Yongjun & Li, Canbing & Li, Jing & Cao, Yijia & Luo, Diansheng & Cao, Huazhen, 2015. "Utilization efficiency of electrical equipment within life cycle assessment: Indexes, analysis and a case," Energy, Elsevier, vol. 88(C), pages 885-896.
    8. Xie, Bai-Chen & Shang, Li-Feng & Yang, Si-Bo & Yi, Bo-Wen, 2014. "Dynamic environmental efficiency evaluation of electric power industries: Evidence from OECD (Organization for Economic Cooperation and Development) and BRIC (Brazil, Russia, India and China) countrie," Energy, Elsevier, vol. 74(C), pages 147-157.
    9. Lin, Yu-Hui & Fu, Tsu-Tan & Chen, Chia-Li & Juo, Jia-Ching, 2017. "Non-radial cost Luenberger productivity indicator," European Journal of Operational Research, Elsevier, vol. 256(2), pages 629-639.
    10. Song, Chenxi & Li, Mingjia & Wen, Zhexi & He, Ya-Ling & Tao, Wen-Quan & Li, Yangzhe & Wei, Xiangyang & Yin, Xiaolan & Huang, Xing, 2014. "Research on energy efficiency evaluation based on indicators for industry sectors in China," Applied Energy, Elsevier, vol. 134(C), pages 550-562.
    11. Honma, Satoshi & Hu, Jin-Li, 2014. "Industry-level total-factor energy efficiency in developed countries: A Japan-centered analysis," Applied Energy, Elsevier, vol. 119(C), pages 67-78.
    12. Siviter, J. & Montecucco, A. & Knox, A.R., 2015. "Rankine cycle efficiency gain using thermoelectric heat pumps," Applied Energy, Elsevier, vol. 140(C), pages 161-170.
    13. repec:eee:eneeco:v:65:y:2017:i:c:p:283-291 is not listed on IDEAS
    14. Li, Hong-Zhou & Tian, Xian-Liang & Zou, Tao, 2015. "Impact analysis of coal-electricity pricing linkage scheme in China based on stochastic frontier cost function," Applied Energy, Elsevier, vol. 151(C), pages 296-305.
    15. repec:eee:rensus:v:80:y:2017:i:c:p:942-970 is not listed on IDEAS
    16. repec:eee:enepol:v:109:y:2017:i:c:p:479-487 is not listed on IDEAS
    17. Fan, Meiting & Shao, Shuai & Yang, Lili, 2015. "Combining global Malmquist–Luenberger index and generalized method of moments to investigate industrial total factor CO2 emission performance: A case of Shanghai (China)," Energy Policy, Elsevier, vol. 79(C), pages 189-201.

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