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Investment Efficiency Analysis and Evaluation of Power Grids in China: A Robust Dynamic DEA Approach Incorporating Time Lag Effects

Author

Listed:
  • Yan Li

    (Economic and Technological Research Institute, Development Division of State Grid Gansu Electric Power Company, Lanzhou 730050, China)

  • Sha Yan

    (State Grid Tianshui Electric Power Supply Company, Tianshui 741000, China)

  • Yongyan Sun

    (Economic and Technological Research Institute, Development Division of State Grid Gansu Electric Power Company, Lanzhou 730050, China)

  • Lihong Liu

    (State Grid Baiyin Electric Power Supply Company, Baiyin 730900, China)

  • Zhiying Zhang

    (School of Engineering, Sichuan Normal University, Chengdu 610101, China)

  • Yuhong Shuai

    (School of Management, Chongqing University of Science and Technology, Chongqing 401331, China)

Abstract

Effective assessment of power grid investment efficiency is crucial for optimizing resource allocation and improving operational performance. However, existing evaluation methods typically fail to account for two critical factors: inherent uncertainties in input–output data and temporal delays in investment returns. To address these limitations, this study introduces an integrated evaluation framework combining robust optimization techniques for uncertain variables with a time-lag Data Envelopment Analysis (DEA) approach to capture the multi-period dynamics and ensure resilience against external shocks and data perturbations. An empirical analysis conducted on panel data from 31 provincial power grid enterprises in China (2015–2023) reveals significant regional disparities in efficiency, particularly between coastal and resource-rich provinces. The findings highlight that excluding time-lag effects leads to systematic underestimation of efficiency and employing robust optimization yields more resilient efficiency scores amidst data uncertainties. The study contributes methodologically by advancing DEA frameworks to better reflect the complexities of power grid investments and empirically provides valuable insights for policymakers seeking to enhance investment strategies and achieve sustainable development goals.

Suggested Citation

  • Yan Li & Sha Yan & Yongyan Sun & Lihong Liu & Zhiying Zhang & Yuhong Shuai, 2025. "Investment Efficiency Analysis and Evaluation of Power Grids in China: A Robust Dynamic DEA Approach Incorporating Time Lag Effects," Energies, MDPI, vol. 18(18), pages 1-28, September.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:18:p:4962-:d:1752449
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    References listed on IDEAS

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