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Power industry restructuring and eco-efficiency changes: A new slacks-based model in Malmquist–Luenberger Index measurement

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  • Arabi, Behrouz
  • Munisamy, Susila
  • Emrouznejad, Ali
  • Shadman, Foroogh

Abstract

Measuring variations in efficiency and its extension, eco-efficiency, during a restructuring period in different industries has always been a point of interest for regulators and policy makers. This paper assesses the impacts of restructuring of procurement in the Iranian power industry on the performance of power plants. We introduce a new slacks-based model for Malmquist–Luenberger (ML) Index measurement and apply it to the power plants to calculate the efficiency, eco-efficiency, and technological changes over the 8-year period (2003–2010) of restructuring in the power industry. The results reveal that although the restructuring had different effects on the individual power plants, the overall growth in the eco-efficiency of the sector was mainly due to advances in pure technology. We also assess the correlation between efficiency and eco-efficiency of the power plants, which indicates a close relationship between these two steps, thus lending support to the incorporation of environmental factors in efficiency analysis.

Suggested Citation

  • Arabi, Behrouz & Munisamy, Susila & Emrouznejad, Ali & Shadman, Foroogh, 2014. "Power industry restructuring and eco-efficiency changes: A new slacks-based model in Malmquist–Luenberger Index measurement," Energy Policy, Elsevier, vol. 68(C), pages 132-145.
    • Handle: RePEc:eee:enepol:v:68:y:2014:i:c:p:132-145
    DOI: 10.1016/j.enpol.2014.01.016
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