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

Yan Li, Sha Yan, Yongyan Sun, Lihong Liu, Zhiying Zhang and Yuhong Shuai ()
Additional contact information
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

Energies, 2025, vol. 18, issue 18, 1-28

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.

Keywords: power grid investment efficiency; robust DEA model; uncertainty; time lag effects (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1996-1073/18/18/4962/pdf (application/pdf)
https://www.mdpi.com/1996-1073/18/18/4962/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:18:y:2025:i:18:p:4962-:d:1752449

Access Statistics for this article

Energies is currently edited by Ms. Cassie Shen

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().