Analysis, Evaluation and Optimization Strategy of China Thermal Power Enterprises’ Business Performance Considering Environmental Costs under the Background of Carbon Trading

Xiaohua Song, Xiao Jiang, Xubei Zhang and Jinpeng Liu
Additional contact information
Xiaohua Song: School of Economics and Management, North China Electric Power University, Changping, Beijing 102206, China
Xiao Jiang: School of Economics and Management, North China Electric Power University, Changping, Beijing 102206, China
Xubei Zhang: School of Economics and Management, North China Electric Power University, Changping, Beijing 102206, China
Jinpeng Liu: School of Economics and Management, North China Electric Power University, Changping, Beijing 102206, China

Sustainability, 2018, vol. 10, issue 6, 1-27

Abstract: With the development of China’s energy structure adjustment and energy conservation and emission reduction, China’s carbon trading market has been fully launched. As an important participant in the carbon trading market, thermal power enterprises that play a major role in China’s power supply structure may bear huge environmental cost pressures, including carbon transaction costs. Under such a circumstance, thermal power enterprises urgently need to ensure operating performance through environmental cost management. This article takes the thermal performance of Chinese thermal power companies under the background of carbon trading as the study object, designs a measurement method for the environmental costs of thermal power companies, and analyzes the influence mechanism of the environmental cost based on the principle of system dynamics. Relying on the correlation analysis between environmental costs and business performance of thermal power companies, the company’s business performance is evaluated by data envelopment analysis (DEA) efficiency. After reaching the study conclusion, the article proposes an optimization strategy for thermal enterprises to manage and control their environmental cost and business performance. This paper closely integrates the actual background of carbon trading, including carbon transaction costs into environmental costs, and conducts an econometric analysis. It constructs a composite measurement of environmental costs that accounts for carbon transaction costs and conducts performance evaluations of power generation companies based on factors such as environmental costs, which all has a certain degree of innovation.

Keywords: environmental costs; thermal power companies; carbon trading; business performance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://www.mdpi.com/2071-1050/10/6/2006/pdf (application/pdf)
https://www.mdpi.com/2071-1050/10/6/2006/ (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:jsusta:v:10:y:2018:i:6:p:2006-:d:152421

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

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