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Efficiency assessment of hydroelectric power plants in Canada: A multi criteria decision making approach

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  • Wang, Bing
  • Nistor, Ioan
  • Murty, Tad
  • Wei, Yi-Ming

Abstract

Hydropower plays a major role in the Canadian electricity generation industry. Few attempts have been made, however, to assess the efficiency of hydropower generation in Canada. This paper analyzes the overall efficiency of hydropower generation in Canada from comprehensive viewpoints of electricity generating capability, its profitability, as well as environmental benefits and social responsibility using the TOPSIS (the Technique for Order Preference by Similarity to Ideal Solution) method. The factors that influence the efficiency of the hydropower generation are also presented to help to the sustainable hydropower production in Canada. The most important results of this study concern (1) the pivotal roles of energy saving and of the social responsibility in the overall efficiency of hydropower corporates and (2) the lower hydropower generation efficiency of some of the most important economic regions in Canada. Other results reveal that the overall efficiency of hydropower generation in Canada experienced an improvement in 2012, following a downtrend from 2005 to 2011. Amidst these influencing factors, energy saving and social responsibility are key factors in the overall efficiency scores while management (defined herein by the number of employees and hydropower stations of a corporation) has only a slightly negative impact on the overall efficiency score.

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  • Wang, Bing & Nistor, Ioan & Murty, Tad & Wei, Yi-Ming, 2014. "Efficiency assessment of hydroelectric power plants in Canada: A multi criteria decision making approach," Energy Economics, Elsevier, vol. 46(C), pages 112-121.
    • Handle: RePEc:eee:eneeco:v:46:y:2014:i:c:p:112-121
    DOI: 10.1016/j.eneco.2014.09.001
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    22. Jin-Wei Wang & Hua Liao & Bao-Jun Tang & Ruo-Yu Ke & Yi-Ming Wei, 2017. "Is the CO2 Emissions Reduction from Scale Change, Structural Change or Technology Change? Evidence from Non-metallic Sector of 11 Major Economies in 1995-2009," CEEP-BIT Working Papers 101, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    23. Vafadarnikjoo, Amin & Tavana, Madjid & Chalvatzis, Konstantinos & Botelho, Tiago, 2022. "A socio-economic and environmental vulnerability assessment model with causal relationships in electric power supply chains," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).

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    More about this item

    Keywords

    Hydropower efficiency; TOPSIS; Social responsibility; Energy saving; Benchmarking management;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General

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