Analysis of dynamic renewable energy generation efficiency and its influencing factors considering cooperation and competition between decision-making units: a case study of China

Fugui Dong, Yugui Yang () and Wanying Li
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Fugui Dong: North China Electric Power University
Yugui Yang: North China Electric Power University
Wanying Li: North China Electric Power University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 3, No 44, 6757-6779

Abstract: Abstract In recent years, under the influence of multiple factors such as the reverse distribution of renewable energy sources-loads, the imbalance of electricity supply and demand, and inter-provincial and inter-regional trading of electricity, the competition and cooperation among provinces have become more and more complicated. Scientific assessment of renewable energy generation efficiency and revelation of its impact mechanism support improving efficiency and differentiating the development of provincial renewable energy. Firstly, a global reference DEA cross-efficiency is built to overcome the shortcomings of static models that cannot compare the efficiency of decision-making units across periods. On this basis, the DEA cross-efficiency model is upgraded by considering the inter-provincial cooperative and competitive relationship. Provincial panel data from 2016 to 2020 are used as sample data to assess the dynamics of hydro, wind, and solar power generation efficiency in China in conjunction with the GML index. Next, the system generalized method of moments is used to investigate the mechanisms influencing renewable energy generation efficiency. The main results are as follows. Slow efficiency improvements and regional imbalances characterize the three renewable energy generation industries. There was little change in hydropower generation efficiency, while wind and solar power generation efficiencies showed a general trend of increasing and then decreasing efficiency. Natural conditions are an important influence in the renewable energy generation industry. There is a positive relationship between inter-provincial electricity transmission and electricity consumption on the efficiency of all three renewable energy generation sources. The positive relationship between grid conditions and hydropower generation efficiency and the positive relationship between power supply investment and solar power generation efficiency is significant.

Keywords: Renewable energy; Power generation efficiency; DEA cross-efficiency model; GML index; SYS-GMM (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10668-023-04165-1

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