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Plant size and Technical Efficiency in the Indian Thermal Power Industry

Author

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  • Joga Singh

    (Shri Ram College of Commerce, University of Delhi)

Abstract

Technical efficiencies of the Indian thermal power industry have been computed in the framework of a frontier production function. Two linear programming exercises are carried out with plantwise data for 1986-87. The efficiency estimates from these exercises are used to compute two regression equations to examine whether the size of a plant does effect its technical efficiency. Our results show that the technical efficiency of a plant is positively associated with its size and capacity utilisation but not with its location.

Suggested Citation

  • Joga Singh, 1991. "Plant size and Technical Efficiency in the Indian Thermal Power Industry," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 26(2), pages 239-252, July.
    • Handle: RePEc:dse:indecr:v:26:y:1991:i:2:p:239-252
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    Cited by:

    1. Surender Kumar & Rakesh Kumar Jain, 2021. "Cost of CO2 emission mitigation and its decomposition: evidence from coal-fired thermal power sector in India," Empirical Economics, Springer, vol. 61(2), pages 693-717, August.
    2. Khanna, Madhu & Zilberman, David, 2001. "Adoption of energy efficient technologies and carbon abatement: the electricity generating sector in India," Energy Economics, Elsevier, vol. 23(6), pages 637-658, November.
    3. S Bandyopadhyay, 2011. "In search of contextual variables in a stochastic DEA framework: effect of regulation on efficiency of Indian cement industry," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(9), pages 1621-1637, September.
    4. L. Dean Hiebert, 2002. "The Determinants of the Cost Efficiency of Electric Generating Plants: A Stochastic Frontier Approach," Southern Economic Journal, John Wiley & Sons, vol. 68(4), pages 935-946, April.
    5. Kabir Malik, Maureen Cropper, Alexander Limonov and Anoop Singh, 2015. "The Impact of Electricity Sector Restructuring on Coal-fired Power Plants in India," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    6. Sugathan, Anish & Malghan, Deepak & Chandrashekar, S. & Sinha, Deepak K., 2019. "Downstream electric utility restructuring and upstream generation efficiency: Productivity dynamics of Indian coal and gas based electricity generators," Energy, Elsevier, vol. 178(C), pages 832-852.
    7. Sahoo, Nihar R. & Mohapatra, Pratap K.J. & Mahanty, Biswajit, 2018. "Examining the process of normalising the energy-efficiency targets for coal-based thermal power sector in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 342-352.
    8. Sahba Fatima, 2016. "Performance Evaluation of Thermal Power Generation: Non-Parametric Frontier Approach," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 4(1), pages 81-92, March.
    9. Ghosh, Ranjan & Kathuria, Vinish, 2016. "The effect of regulatory governance on efficiency of thermal power generation in India: A stochastic frontier analysis," Energy Policy, Elsevier, vol. 89(C), pages 11-24.
    10. Kabir Malik & Maureen Cropper & Alexander Limonov & Anoop Singh, 2011. "Estimating the Impact of Restructuring on Electricity Generation Efficiency: The Case of the Indian Thermal Power Sector," NBER Working Papers 17383, National Bureau of Economic Research, Inc.

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