The efficiencies of Chinese coal-fired power plants: a stochastic-frontier approach

Jean-Baptiste Lesourd, Guy Liu and St�phane Genoud

Journal of Chinese Economic and Business Studies, 2014, vol. 12, issue 4, 383-393

Abstract: We apply the stochastic frontier of translog production function to estimate the efficiencies of Chinese coal-fired power plants, using a survey sample of 300 power plants over 5 years from 2004 to 2008 for estimation. By taking into account, the ages of generators and a technological factor reflected by a dummy for supercritical generators, we identified the improvement of efficiencies in the Chinese power industry over the period, and the coal-fired power plants that still run inefficiently by approximate 9% on average when compared with the best practice of cost efficiency in the power industry.

Date: 2014
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DOI: 10.1080/14765284.2014.952514

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