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Cost efficiency of Japanese steam power generation companies: A Bayesian comparison of random and fixed frontier models

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  • Assaf, A. George
  • Barros, Carlos Pestana
  • Managi, Shunsuke

Abstract

This study analyses and compares the cost efficiency of Japanese steam power generation companies using the fixed and random Bayesian frontier models. We show that it is essential to account for heterogeneity in modelling the performance of energy companies. Results from the model estimation also indicate that restricting CO2 emissions can lead to a decrease in total cost. The study finally discusses the efficiency variations between the energy companies under analysis, and elaborates on the managerial and policy implications of the results.

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  • Assaf, A. George & Barros, Carlos Pestana & Managi, Shunsuke, 2011. "Cost efficiency of Japanese steam power generation companies: A Bayesian comparison of random and fixed frontier models," Applied Energy, Elsevier, vol. 88(4), pages 1441-1446, April.
  • Handle: RePEc:eee:appene:v:88:y:2011:i:4:p:1441-1446
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    Cited by:

    1. Mousavi-Avval, Seyed Hashem & Rafiee, Shahin & Jafari, Ali & Mohammadi, Ali, 2011. "Optimization of energy consumption for soybean production using Data Envelopment Analysis (DEA) approach," Applied Energy, Elsevier, vol. 88(11), pages 3765-3772.
    2. repec:eee:eneeco:v:70:y:2018:i:c:p:26-36 is not listed on IDEAS
    3. repec:eee:eneeco:v:65:y:2017:i:c:p:283-291 is not listed on IDEAS
    4. Pombo, Carlos & Taborda, Rodrigo, 2006. "Performance and efficiency in Colombia's power distribution system: Effects of the 1994 reform," Energy Economics, Elsevier, vol. 28(3), pages 339-369, May.
    5. Surender Kumar & Hidemichi Fujii & Shunsuke Managi, 2014. "Substitute or complement? Assessing renewable and non-renewable energy in OCED countries," Working Papers SDES-2014-8, Kochi University of Technology, School of Economics and Management, revised Oct 2014.
    6. Zhang, Yixiang & Wang, Zhaohua & Zhou, Guanghui, 2013. "Determinants and implications of employee electricity saving habit: An empirical study in China," Applied Energy, Elsevier, vol. 112(C), pages 1529-1535.
    7. 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.

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