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Technical efficiency and CO2 reduction potentials — An analysis of the German electricity and heat generating sector

Stefan Seifert, Astrid Cullmann and Christian von Hirschhausen

Energy Economics, 2016, vol. 56, issue C, 9-19

Abstract: In this paper, we analyze the technical efficiency and CO2 reduction potentials of German power and heat plants, using a non-parametric sequential Data Envelopment Analysis. We apply a metafrontier framework to evaluate plant-level efficiency in the transformation of inputs into desirable (energy) and undesirable (CO2 emissions) outputs, taking into account different fossil fuel generation technologies. We use a unique data set of coal-, lignite-, gas- and biomass-fired power plants from 2003 through 2010 that provides an unbalanced panel of 1459 observations; the results are also checked against a balanced panel with a smaller number of observations. Although we find intra-group differences within energy generation technology, natural gas fired power plants clearly have the highest efficiency. Furthermore, the analysis points to significant savings potentials for CO2 and fuel-input, and derives policy conclusions for the ongoing electricity sector reformation.

Keywords: Electricity and heat generation; Non-parametric efficiency analysis; Germany; Panel 2003-1010 (search for similar items in EconPapers)
JEL-codes: C14 L94 Q50 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:56:y:2016:i:c:p:9-19

DOI: 10.1016/j.eneco.2016.02.020

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