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Convergence of Operational Efficiency in Chinas Provincial Power Sectors

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  • Vishal Chandr Jaunky and Lin Zhang

Abstract

To analyze the operational efficiency of Chinese power sector at the provincial level, this paper studies the convergence of technical efficiency and productivity growth of electricity across 29 Chinese provinces during the period 1996-2008 using several convergence models. Depending on the model being employed, we find evidence of convergence of operational efficiency towards either a national steady state or towards their own steady states, with the latter process occurring more rapidly. In essence, our study provides evidence of negative effects of government intervention. Additionally, we use the nonparametric distribution dynamics approach to analyze intra-distributional dynamics of technical efficiency and productivity. We find some support for productivity convergence while technical efficiency does not converge for provinces with relatively low levels. We discuss policy implementations based on our model results and highlight several aspects for policy making in the power sector reforms currently being undertaken.

Suggested Citation

  • Vishal Chandr Jaunky and Lin Zhang, 2016. "Convergence of Operational Efficiency in Chinas Provincial Power Sectors," The Energy Journal, International Association for Energy Economics, vol. 0(China Spe).
    • Handle: RePEc:aen:journl:ej37-si1-jaunky
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    5. Hou, Zheng & Roseta-Palma, Catarina & Ramalho, Joaquim J.S., 2024. "Can operational efficiency in the Portuguese electricity sector be improved? Yes, but..," Energy Policy, Elsevier, vol. 190(C).
    6. Jianhuan Huang & Yantuan Yu & Chunbo Ma, 2018. "Energy Efficiency Convergence in China: Catch-Up, Lock-In and Regulatory Uniformity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(1), pages 107-130, May.
    7. Tajudeen, Ibrahim A., 2021. "The underlying drivers of economy-wide energy efficiency and asymmetric energy price responses," Energy Economics, Elsevier, vol. 98(C).
    8. Qi, Shaozhou & Peng, Huarong & Zhang, Xiaoling & Tan, Xiujie, 2019. "Is energy efficiency of Belt and Road Initiative countries catching up or falling behind? Evidence from a panel quantile regression approach," Applied Energy, Elsevier, vol. 253(C), pages 1-1.

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