Improve technical efficiency of China's coal-fired power enterprises: Taking a coal-fired-withdrawl context

Gao Li, Li Ruonan, Mei Yingdan and Zhao Xiaoli

Energy, 2022, vol. 252, issue C

Abstract: In the process of energy transition, reference standards are needed to guide the orderly withdrawal of coal-fired power enterprises. This study applies stochastic frontier analysis to measure the technical efficiency, as the reference standard, based on data from all coal-fired power enterprises of a large Chinese power generation group from 2010 to 2015. Meanwhile, in order to make more specific policy recommendations, this paper provides a detailed analysis of the technical efficiency in three aspects: return to scale, operation hours, and regional characteristics. The empirical results show that the average technical efficiency of coal-fired power enterprises is 0.818, which still leaves room for improvement of about 20%; the industry shows slightly decreasing return to scale, which primarily results from enterprises with larger capacity but less operation hours; correlation between efficiency and operation hours varies widely among regions, with South and Northwest China in the greatest need of improving the generation assignment approach; finally, unit coal reduction and equity increase are important ways to improve technical efficiency, and older power enterprises and larger units have greater potential for high-quality power supply. The findings will serve as a reference for policy makers to promote a more effective planning of coal-fired power industry in China.

Keywords: Coal-fired power enterprises; Technical efficiency; Stochastic frontier analysis; China (search for similar items in EconPapers)
JEL-codes: D24 L11 L25 Q4 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:252:y:2022:i:c:s0360544222008829

DOI: 10.1016/j.energy.2022.123979

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