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Total-factor carbon emission performance of fossil fuel power plants in China: A metafrontier non-radial Malmquist index analysis

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  • Zhang, Ning
  • Choi, Yongrok

Abstract

This paper proposes the metafrontier non-radial Malmquist CO2 emission performance index (MNMCPI) for measuring dynamic changes in total-factor CO2 emission performance over time. The MNMCPI method allows for the incorporation of group heterogeneity and non-radial slack into the previously introduced Malmquist CO2 emission performance index (MCPI). We derive the MNMCPI by solving several non-radial data envelopment analysis (DEA) models. We decompose the MNMCPI into an efficiency change (EC) index, a best-practice gap change (BPC) index, and a technology gap change (TGC) index, and based on the proposed indices, we examine the dynamic changes in CO2 emission performance and its decomposition of fossil fuel power plants in China for the 2005–2010 period. The empirical results show a 0.38% increase in total-factor CO2 emission performance as a whole and a U-shaped MNMCPI curve for the sample period. Because companies owned by the central government lack innovation and technological leadership, the results suggest a missing link in the role of the central government in promoting CO2 emission performance.

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  • Zhang, Ning & Choi, Yongrok, 2013. "Total-factor carbon emission performance of fossil fuel power plants in China: A metafrontier non-radial Malmquist index analysis," Energy Economics, Elsevier, vol. 40(C), pages 549-559.
  • Handle: RePEc:eee:eneeco:v:40:y:2013:i:c:p:549-559
    DOI: 10.1016/j.eneco.2013.08.012
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    More about this item

    Keywords

    Total-factor CO2 emission performance; Metafrontier Malmquist index; Non-radial directional distance function; Chinese fossil-fuel power plants; Data envelopment analysis;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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