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Incorporating Undesirable Outputs into Malmquist TFP Index: Environmental Performance Growth of Chinese Coal-Fired Power Plants

Author

Listed:
  • Hongliang Yang

    (Judge Business School, University of Cambridge)

  • Michael Pollitt

    (Judge Business School, University of Cambridge)

Abstract

In this article we examine the effects of undesirable outputs on the Malmquist TFP indices. Our empirical work uses an unbalanced panel which covers 796 utility and non-utility coal-fired power plants in China during 1996-2002. In order to meet the requirement of a balanced panel for calculating the Malmquist indices, an innovative fake unit approach has been introduced. Our final results show that (1) the growth of the Chinese electricity heavily depends upon an increase of resource input; and (2) huge potential remains with regards to the efficiency improvement and emissions control in Chinese coal-fired power plants.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Hongliang Yang & Michael Pollitt, 2007. "Incorporating Undesirable Outputs into Malmquist TFP Index: Environmental Performance Growth of Chinese Coal-Fired Power Plants," Working Papers EPRG 0716, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    • Handle: RePEc:enp:wpaper:eprg0716
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    Cited by:

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    2. Li, Hong-Zhou & Kopsakangas-Savolainen, Maria & Yan, Ming-Zhe & Wang, Jian-Lin & Xie, Bai-Chen, 2019. "Which provincial administrative regions in China should reduce their coal consumption? An environmental energy input requirement function based analysis," Energy Policy, Elsevier, vol. 127(C), pages 51-63.

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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