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Study on Environmental Performance of Power Generation Industry and Its Factors

Author WangYiShu
Tutor LiZuoHua;ZhangGuangXiong
School Tianjin University
Course Logistics Engineering
Keywords power generation industry efficiency evaluation directionaldistance function three-stage DEA cost Malmquist-Luenberger index
Type Master's thesis
Year 2012
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In recent years, growing demand of power and increasing shortage of fuel supplyhave become the main contradiction faced by China’s power generation industry.Along with the worldwide trend of climate change mitigation, the development ofpower generation industry faces even more difficulties. Considering the influence ofexternal factors such as the resources endowment of different areas, economicssituation and the price fluctuation of fuels, how to evaluate and then improve theenvironmental efficiency of power generation industry is a challenging issue forcorresponding authorities.This dissertation focus on two topics: one is studying the efficiencies ofprovinces’ whole power generation industries with external factors outside of industryconsidered; the other is discussing the cost efficiencies of provinces’ thermal powerindustries. To the first problem, a three-stage DEA model based on directionaldistance function is employed to evaluate environmental efficiencies of30provinces’generation divisions from2000to2009, in which carbon emission has been taken intoaccount aimed at catering to the demand of reduction. To the second, combining themerits of cost Malmquist index and Malmquist-Luenberger index this paperintroduces a new Malmquist index, then uses it to measure the dynamic costefficiencies of30provinces’ thermal power industries during the same period as theabove problem, finally quantifies the influence of input price changes on the priceeffect using panel data regression.Results indicate: external factors have significant effect on efficiency, specificpolicies on power generation reform should be diversified according to regions’different situations; the development of clean energy obviously promotes the greenand harmonious development of power industry, but the provinces with highproportion of clean energy have certain room for improvement of thermal powerproduction efficiency; coal price rise does not have direct influence on cost efficiency,the focus of future policy reforms should shift from adjusting external environment toencouraging corporations to improve their management.

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