IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v27y2025i5d10.1007_s10668-023-04372-w.html
   My bibliography  Save this article

Green cost performance measure of China’s thermal power industry: evidence from Chinese 30 provinces

Author

Listed:
  • Xiang Chen

    (Zhejiang University of Finance and Economics)

  • Jiayu Zhang

    (Zhejiang University of Finance and Economics)

  • Chih-Yu Yang

    (Soochow University)

  • Ching-Cheng Lu

    (National Open University)

  • Jun Wang

    (Xinjiang Institute of Technology)

Abstract

As the concentration of carbon dioxide within the environment increases, the dwelling environment of people is significantly influenced. As an industry with excessive carbon emissions in China, thermal energy companies are the major areas where China should lower carbon emissions. This research first adopts a New-Cost model to survey the energy performance of thermal-electricity field in four foremost regions of China from 2013 to 2017. Due to the variations in technology of thermal power generation among four regions, The technology gap ratio analysis is applied to estimate the gap between the group frontier and meta-frontier technology. The estimated results display that the eastern region is better in terms of efficiency than the other three regions, also there is a great technological gap in the northeastern region. On the premise of the research conclusions, further improving the performance of Chinese thermal power organizations underneath carbon emission constraints in the future is proposed in this study. It is significantly profitable for several companies to optimize their own short comings.

Suggested Citation

  • Xiang Chen & Jiayu Zhang & Chih-Yu Yang & Ching-Cheng Lu & Jun Wang, 2025. "Green cost performance measure of China’s thermal power industry: evidence from Chinese 30 provinces," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(5), pages 11627-11644, May.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:5:d:10.1007_s10668-023-04372-w
    DOI: 10.1007/s10668-023-04372-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-023-04372-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-023-04372-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chen, Tser-yieth, 2002. "An assessment of technical efficiency and cross-efficiency in Taiwan's electricity distribution sector," European Journal of Operational Research, Elsevier, vol. 137(2), pages 421-433, March.
    2. Curtis Carlson & Dallas Burtraw & Maureen Cropper & Karen L. Palmer, 2000. "Sulfur Dioxide Control by Electric Utilities: What Are the Gains from Trade?," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1292-1326, December.
    3. Welch, Eric & Barnum, Darold, 2009. "Joint environmental and cost efficiency analysis of electricity generation," Ecological Economics, Elsevier, vol. 68(8-9), pages 2336-2343, June.
    4. Russell W. Pittman, 1981. "Issue in Pollution Control: Interplant Cost Differences and Economies of Scale," Land Economics, University of Wisconsin Press, vol. 57(1), pages 1-17.
    5. Ke Wang & Yujiao Xian & Yi-Ming Wei & Zhimin Huang, 2016. "Sources of carbon productivity change: A decomposition and disaggregation analysis based on global Luenberger productivity indicator and endogenous directional distance function," CEEP-BIT Working Papers 91, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    6. Yang, Hongliang & Pollitt, Michael, 2009. "Incorporating both undesirable outputs and uncontrollable variables into DEA: The performance of Chinese coal-fired power plants," European Journal of Operational Research, Elsevier, vol. 197(3), pages 1095-1105, September.
    7. Sueyoshi, Toshiyuki & Goto, Mika, 2001. "Slack-adjusted DEA for time series analysis: Performance measurement of Japanese electric power generation industry in 1984-1993," European Journal of Operational Research, Elsevier, vol. 133(2), pages 232-259, January.
    8. Kao, Chiang, 2014. "Network data envelopment analysis: A review," European Journal of Operational Research, Elsevier, vol. 239(1), pages 1-16.
    9. Charles D. Kolstad & Michelle H. L. Turnovsky, 1998. "Cost Functions And Nonlinear Prices: Estimating A Technology With Quality-Differentiated Inputs," The Review of Economics and Statistics, MIT Press, vol. 80(3), pages 444-453, August.
    10. Hu, Jin-Li & Wang, Shih-Chuan, 2006. "Total-factor energy efficiency of regions in China," Energy Policy, Elsevier, vol. 34(17), pages 3206-3217, November.
    11. Chiang Kao, 2014. "Efficiency Decomposition in Network Data Envelopment Analysis," International Series in Operations Research & Management Science, in: Wade D. Cook & Joe Zhu (ed.), Data Envelopment Analysis, edition 127, chapter 0, pages 55-77, Springer.
    12. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    13. Lam, Pun-Lee & Shiu, Alice, 2001. "A data envelopment analysis of the efficiency of China's thermal power generation," Utilities Policy, Elsevier, vol. 10(2), pages 75-83, June.
    14. Ke Wang & Jieming Zhang & Yi-Ming Wei, 2017. "Operational and environmental performance in China¡¯s thermal power industry: Taking an effectiveness measure as complement to an efficiency measure," CEEP-BIT Working Papers 100, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    15. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    16. K Tone, 2002. "A strange case of the cost and allocative efficiencies in DEA," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(11), pages 1225-1231, November.
    17. Wu, Haitao & Hao, Yu & Ren, Siyu & Yang, Xiaodong & Xie, Guo, 2021. "Does internet development improve green total factor energy efficiency? Evidence from China," Energy Policy, Elsevier, vol. 153(C).
    18. Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-891, December.
    19. Fare, Rolf & Grosskopf, Shawna & Logan, James, 1983. "The relative efficiency of Illinois electric utilities," Resources and Energy, Elsevier, vol. 5(4), pages 349-367, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alizadeh, Reza & Gharizadeh Beiragh, Ramin & Soltanisehat, Leili & Soltanzadeh, Elham & Lund, Peter D., 2020. "Performance evaluation of complex electricity generation systems: A dynamic network-based data envelopment analysis approach," Energy Economics, Elsevier, vol. 91(C).
    2. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
    3. Li, Ming-Jia & Tao, Wen-Quan, 2017. "Review of methodologies and polices for evaluation of energy efficiency in high energy-consuming industry," Applied Energy, Elsevier, vol. 187(C), pages 203-215.
    4. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    5. Bi, Gong-Bing & Song, Wen & Zhou, P. & Liang, Liang, 2014. "Does environmental regulation affect energy efficiency in China's thermal power generation? Empirical evidence from a slacks-based DEA model," Energy Policy, Elsevier, vol. 66(C), pages 537-546.
    6. Camanho, Ana Santos & Silva, Maria Conceicao & Piran, Fabio Sartori & Lacerda, Daniel Pacheco, 2024. "A literature review of economic efficiency assessments using Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 315(1), pages 1-18.
    7. Li, Feng & Zhang, Danlu & Zhang, Jinyu & Kou, Gang, 2022. "Measuring the energy production and utilization efficiency of Chinese thermal power industry with the fixed-sum carbon emission constraint," International Journal of Production Economics, Elsevier, vol. 252(C).
    8. Wang, Ke & Wei, Yi-Ming & Huang, Zhimin, 2018. "Environmental efficiency and abatement efficiency measurements of China's thermal power industry: A data envelopment analysis based materials balance approach," European Journal of Operational Research, Elsevier, vol. 269(1), pages 35-50.
    9. Hampf, Benjamin, 2017. "Rational inefficiency, adjustment costs and sequential technologies," European Journal of Operational Research, Elsevier, vol. 263(3), pages 1095-1108.
    10. Du, Huibin & Matisoff, Daniel C. & Wang, Yangyang & Liu, Xi, 2016. "Understanding drivers of energy efficiency changes in China," Applied Energy, Elsevier, vol. 184(C), pages 1196-1206.
    11. Eguchi, Shogo & Takayabu, Hirotaka & Lin, Chen, 2021. "Sources of inefficient power generation by coal-fired thermal power plants in China: A metafrontier DEA decomposition approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    12. Hampf, Benjamin & Rødseth, Kenneth Løvold, 2019. "Environmental efficiency measurement with heterogeneous input quality: A nonparametric analysis of U.S. power plants," Energy Economics, Elsevier, vol. 81(C), pages 610-625.
    13. Ke Wang & Jieming Zhang & Yi-Ming Wei, 2017. "Operational and environmental performance in China¡¯s thermal power industry: Taking an effectiveness measure as complement to an efficiency measure," CEEP-BIT Working Papers 100, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    14. Lee, Boon L. & Wilson, Clevo & Simshauser, Paul & Majiwa, Eucabeth, 2021. "Deregulation, efficiency and policy determination: An analysis of Australia's electricity distribution sector," Energy Economics, Elsevier, vol. 98(C).
    15. Wen, Yao & An, Qingxian & Gong, Yeming & Wu, Pengkun, 2024. "Structural rearrangement of the network system from an efficiency perspective: A silver lining of profit improvement," European Journal of Operational Research, Elsevier, vol. 316(3), pages 1001-1011.
    16. Ke Wang & Yi-Ming Wei & Zhimin Huang, 2017. "Environmental efficiency and abatement efficiency measurements of China¡¯s thermal power industry: A data envelopment analysis based materials balance approach," CEEP-BIT Working Papers 108, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    17. Sinuany-Stern, Zilla, 2023. "Foundations of operations research: From linear programming to data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1069-1080.
    18. Mardani, Abbas & Zavadskas, Edmundas Kazimieras & Streimikiene, Dalia & Jusoh, Ahmad & Khoshnoudi, Masoumeh, 2017. "A comprehensive review of data envelopment analysis (DEA) approach in energy efficiency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1298-1322.
    19. Sickles, Robin C. & Song, Wonho & Zelenyuk, Valentin, 2018. "Econometric Analysis of Productivity: Theory and Implementation in R," Working Papers 18-008, Rice University, Department of Economics.
    20. Koronakos, Gregory & Sotiros, Dimitris & Despotis, Dimitris K. & Kritikos, Manolis N., 2022. "Fair efficiency decomposition in network DEA: A compromise programming approach," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:27:y:2025:i:5:d:10.1007_s10668-023-04372-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.