IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v111y2016icp722-735.html
   My bibliography  Save this article

Eco-efficiency considering the issue of heterogeneity among power plants

Author

Listed:
  • Arabi, Behrouz
  • Munisamy, Susila
  • Emrouznejad, Ali
  • Toloo, Mehdi
  • Ghazizadeh, Mohammad Sadegh

Abstract

One of the main objectives in restructuring power industry is enhancing the efficiency of power facilities. However, power generation industry, which plays a key role in the power industry, has a noticeable share in emission amongst all other emission-generating sectors. In this study, we have developed some new Data Envelopment Analysis models to find efficient power plants based on less fuel consumption, combusting less polluting fuel types, and incorporating emission factors in order to measure the ecological efficiency trend. We then applied these models to measuring eco-efficiency during an eight-year period of power industry restructuring in Iran. Results reveal that there has been a significant improvement in eco-efficiency, cost efficiency and allocative efficiency of the power plants during the restructuring period. It is also shown that despite the hydro power plants look eco-efficient; the combined cycle ones have been more allocative efficient than the other power generation technologies used in Iran.

Suggested Citation

  • Arabi, Behrouz & Munisamy, Susila & Emrouznejad, Ali & Toloo, Mehdi & Ghazizadeh, Mohammad Sadegh, 2016. "Eco-efficiency considering the issue of heterogeneity among power plants," Energy, Elsevier, vol. 111(C), pages 722-735.
    • Handle: RePEc:eee:energy:v:111:y:2016:i:c:p:722-735
    DOI: 10.1016/j.energy.2016.05.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544216305540
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2016.05.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Färe, Rolf & Grosskopf, Shawna, 2010. "Directional distance functions and slacks-based measures of efficiency: Some clarifications," European Journal of Operational Research, Elsevier, vol. 206(3), pages 702-702, November.
    2. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
    3. Boyd, Gale A. & McClelland, John D., 1999. "The Impact of Environmental Constraints on Productivity Improvement in Integrated Paper Plants," Journal of Environmental Economics and Management, Elsevier, vol. 38(2), pages 121-142, September.
    4. Maniadakis, Nikolaos & Thanassoulis, Emmanuel, 2004. "A cost Malmquist productivity index," European Journal of Operational Research, Elsevier, vol. 154(2), pages 396-409, April.
    5. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 2008. "The Measurement of Productive Efficiency and Productivity Growth," OUP Catalogue, Oxford University Press, number 9780195183528.
    6. Goto, Mika & Tsutsui, Miki, 1998. "Comparison of Productive and Cost Efficiencies Among Japanese and US Electric Utilities," Omega, Elsevier, vol. 26(2), pages 177-194, April.
    7. Knox Lovell, C. A. & Pastor, Jesus T. & Turner, Judi A., 1995. "Measuring macroeconomic performance in the OECD: A comparison of European and non-European countries," European Journal of Operational Research, Elsevier, vol. 87(3), pages 507-518, December.
    8. repec:bla:scandj:v:94:y:1992:i:0:p:s211-28 is not listed on IDEAS
    9. Kurz,Heinz D. & Salvadori,Neri, 1997. "Theory of Production," Cambridge Books, Cambridge University Press, number 9780521588676, January.
    10. Banker, Rajiv D., 1984. "Estimating most productive scale size using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 17(1), pages 35-44, July.
    11. Arabi, Behrouz & Munisamy, Susila & Emrouznejad, Ali & Shadman, Foroogh, 2014. "Power industry restructuring and eco-efficiency changes: A new slacks-based model in Malmquist–Luenberger Index measurement," Energy Policy, Elsevier, vol. 68(C), pages 132-145.
    12. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    13. Arabi, Behrouz & Munisamy, Susila & Emrouznejad, Ali, 2015. "A new slacks-based measure of Malmquist–Luenberger index in the presence of undesirable outputs," Omega, Elsevier, vol. 51(C), pages 29-37.
    14. Zhou, P. & Ang, B.W. & Poh, K.L., 2006. "Slacks-based efficiency measures for modeling environmental performance," Ecological Economics, Elsevier, vol. 60(1), pages 111-118, November.
    15. Athanassopoulos, Antreas D. & Lambroukos, Nikos & Seiford, Lawrence, 1999. "Data envelopment scenario analysis for setting targets to electricity generating plants," European Journal of Operational Research, Elsevier, vol. 115(3), pages 413-428, June.
    16. Khoshroo, Alireza & Mulwa, Richard & Emrouznejad, Ali & Arabi, Behrouz, 2013. "A non-parametric Data Envelopment Analysis approach for improving energy efficiency of grape production," Energy, Elsevier, vol. 63(C), pages 189-194.
    17. Sueyoshi, Toshiyuki & Goto, Mika, 2011. "DEA approach for unified efficiency measurement: Assessment of Japanese fossil fuel power generation," Energy Economics, Elsevier, vol. 33(2), pages 292-303, March.
    18. Korhonen, Pekka J. & Luptacik, Mikulas, 2004. "Eco-efficiency analysis of power plants: An extension of data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 154(2), pages 437-446, April.
    19. Burnett, Royce D. & Hansen, Don R., 2008. "Ecoefficiency: Defining a role for environmental cost management," Accounting, Organizations and Society, Elsevier, vol. 33(6), pages 551-581, August.
    20. K.R. Shanmugam & Praveen Kulshreshtha, 2005. "Efficiency analysis of coal-based thermal power generation in India during post-reform era," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 23(1), pages 15-28.
    21. Noor Ramli & Susila Munisamy & Behrouz Arabi, 2013. "Scale directional distance function and its application to the measurement of eco-efficiency in the manufacturing sector," Annals of Operations Research, Springer, vol. 211(1), pages 381-398, December.
    22. repec:bla:econom:v:61:y:1994:i:242:p:237-51 is not listed on IDEAS
    23. Lee, Seong Kon & Mogi, Gento & Hui, K.S., 2013. "A fuzzy analytic hierarchy process (AHP)/data envelopment analysis (DEA) hybrid model for efficiently allocating energy R&D resources: In the case of energy technologies against high oil prices," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 347-355.
    24. Mostafaee, A. & Saljooghi, F.H., 2010. "Cost efficiency measures in data envelopment analysis with data uncertainty," European Journal of Operational Research, Elsevier, vol. 202(2), pages 595-603, April.
    25. Wang, H., 2015. "A generalized MCDA–DEA (multi-criterion decision analysis–data envelopment analysis) approach to construct slacks-based composite indicator," Energy, Elsevier, vol. 80(C), pages 114-122.
    26. Fare, Rolf & Grosskopf, Shawna & Noh, Dong-Woon & Weber, William, 2005. "Characteristics of a polluting technology: theory and practice," Journal of Econometrics, Elsevier, vol. 126(2), pages 469-492, June.
    27. Wade D. Cook & Joe Zhu, 2015. "DEA Cross Efficiency," International Series in Operations Research & Management Science, in: Joe Zhu (ed.), Data Envelopment Analysis, edition 127, chapter 2, pages 23-43, Springer.
    28. Li, Ke & Lin, Boqiang, 2015. "The improvement gap in energy intensity: Analysis of China's thirty provincial regions using the improved DEA (data envelopment analysis) model," Energy, Elsevier, vol. 84(C), pages 589-599.
    29. Han, Yongming & Geng, Zhiqiang & Zhu, Qunxiong & Qu, Yixin, 2015. "Energy efficiency analysis method based on fuzzy DEA cross-model for ethylene production systems in chemical industry," Energy, Elsevier, vol. 83(C), pages 685-695.
    30. Gerald Granderson & Diego Prior, 2013. "Environmental externalities and regulation constrained cost productivity growth in the US electric utility industry," Journal of Productivity Analysis, Springer, vol. 39(3), pages 243-257, June.
    31. Färe, Rolf & Fukuyama, Hirofumi & Grosskopf, Shawna & Zelenyuk, Valentin, 2015. "Decomposing profit efficiency using a slack-based directional distance function," European Journal of Operational Research, Elsevier, vol. 247(1), pages 335-337.
    32. Mazandarani, A. & Mahlia, T.M.I. & Chong, W.T. & Moghavvemi, M., 2011. "Fuel consumption and emission prediction by Iranian power plants until 2025," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(3), pages 1575-1592, April.
    33. Yaisawarng, Suthathip & Klein, J Douglass, 1994. "The Effects of Sulfur Dioxide Controls on Productivity Change in the U.S. Electric Power Industry," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 447-460, August.
    34. Jahangoshai Rezaee, Mustafa & Moini, Alireza & Makui, Ahmad, 2012. "Operational and non-operational performance evaluation of thermal power plants in Iran: A game theory approach," Energy, Elsevier, vol. 38(1), pages 96-103.
    35. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    36. Khosroshahi, Kaveh Aflaki & Jadid, Shahram & Shahidehpour, Mohammad, 2009. "Electric Power Restructuring in Iran: Achievements and Challenges," The Electricity Journal, Elsevier, vol. 22(2), pages 74-83, March.
    37. Hirofumi Fukuyama & Hiroya Masaki & Kazuyuki Sekitani & Jianming Shi, 2014. "Distance optimization approach to ratio-form efficiency measures in data envelopment analysis," Journal of Productivity Analysis, Springer, vol. 42(2), pages 175-186, October.
    38. Färe, Rolf & Grosskopf, Shawna, 2010. "Directional distance functions and slacks-based measures of efficiency," European Journal of Operational Research, Elsevier, vol. 200(1), pages 320-322, January.
    39. Rolf Färe & Shawna Grosskopf & Carl Pasurka, 2006. "Social responsibility: U.S. power plants 1985–1998," Journal of Productivity Analysis, Springer, vol. 26(3), pages 259-267, December.
    40. Dyson, R. G. & Allen, R. & Camanho, A. S. & Podinovski, V. V. & Sarrico, C. S. & Shale, E. A., 2001. "Pitfalls and protocols in DEA," European Journal of Operational Research, Elsevier, vol. 132(2), pages 245-259, July.
    41. Emrouznejad, Ali & De Witte, Kristof, 2010. "COOPER-framework: A unified process for non-parametric projects," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1573-1586, December.
    42. Emrouznejad, A. & De Witte, K., 2010. "COOPER-framework: A Unified Standard Process for Non-parametric Projects," Working Papers 18, Top Institute for Evidence Based Education Research.
    43. Song, Malin & Song, Yaqing & An, Qingxian & Yu, Huayin, 2013. "Review of environmental efficiency and its influencing factors in China: 1998–2009," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 8-14.
    44. Daniel Tyteca, 1997. "Linear Programming Models for the Measurement of Environmental Performance of Firms—Concepts and Empirical Results," Journal of Productivity Analysis, Springer, vol. 8(2), pages 183-197, May.
    45. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    46. Sarıca, Kemal & Or, Ilhan, 2007. "Efficiency assessment of Turkish power plants using data envelopment analysis," Energy, Elsevier, vol. 32(8), pages 1484-1499.
    47. Philippe Aghion & Peter Howitt, 1997. "Endogenous Growth Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011662, December.
    48. Ball, E. & Fare, R. & Grosskopf, S. & Zaim, O., 2005. "Accounting for externalities in the measurement of productivity growth: the Malmquist cost productivity measure," Structural Change and Economic Dynamics, Elsevier, vol. 16(3), pages 374-394, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hosseini, Keyvan & Stefaniec, Agnieszka, 2019. "Efficiency assessment of Iran's petroleum refining industry in the presence of unprofitable output: A dynamic two-stage slacks-based measure," Energy, Elsevier, vol. 189(C).
    2. Yantuan Yu & Yun Zhang & Xiao Miao, 2018. "Impacts of Dynamic Agglomeration Externalities on Eco-Efficiency: Empirical Evidence from China," IJERPH, MDPI, vol. 15(10), pages 1-27, October.
    3. Sepideh Abolghasem & Mehdi Toloo & Santiago Amézquita, 2019. "Cross-efficiency evaluation in the presence of flexible measures with an application to healthcare systems," Health Care Management Science, Springer, vol. 22(3), pages 512-533, September.
    4. Toshiyuki Sueyoshi & Ruchuan Zhang & Aijun Li, 2023. "Measuring and Analyzing Operational Efficiency and Returns to Scale in a Time Horizon: Assessment of China’s Electricity Generation & Transmission at Provincial Levels," Energies, MDPI, vol. 16(2), pages 1-23, January.
    5. Long, Xingle & Wu, Chao & Zhang, Jijian & Zhang, Jing, 2018. "Environmental efficiency for 192 thermal power plants in the Yangtze River Delta considering heterogeneity: A metafrontier directional slacks-based measure approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3962-3971.
    6. Yantuan Yu & Jianhuan Huang & Nengsheng Luo, 2018. "Can More Environmental Information Disclosure Lead to Higher Eco-Efficiency? Evidence from China," Sustainability, MDPI, vol. 10(2), pages 1-20, February.
    7. Jie Wu & Panpan Xia & Qingyuan Zhu & Junfei Chu, 2019. "Measuring environmental efficiency of thermoelectric power plants: a common equilibrium efficient frontier DEA approach with fixed-sum undesirable output," Annals of Operations Research, Springer, vol. 275(2), pages 731-749, April.
    8. Toloo, Mehdi & Tone, Kaoru & Izadikhah, Mohammad, 2023. "Selecting slacks-based data envelopment analysis models," European Journal of Operational Research, Elsevier, vol. 308(3), pages 1302-1318.
    9. Hampf, Benjamin, 2018. "Cost and environmental efficiency of U.S. electricity generation: Accounting for heterogeneous inputs and transportation costs," Energy, Elsevier, vol. 163(C), pages 932-941.
    10. Sun, Chuanwang & Liu, Xiaohong & Li, Aijun, 2018. "Measuring unified efficiency of Chinese fossil fuel power plants: Intermediate approach combined with group heterogeneity and window analysis," Energy Policy, Elsevier, vol. 123(C), pages 8-18.
    11. Corsatea, Teodora Diana & Giaccaria, Sergio, 2018. "Market regulation and environmental productivity changes in the electricity and gas sector of 13 observed EU countries," Energy, Elsevier, vol. 164(C), pages 1286-1297.
    12. Chuanxin Xia & Yu Zhao & Qingxia Zhao & Shuo Wang & Ning Zhang, 2022. "Exact Eco-Efficiency Measurement in the Yellow River Basin: A New Non-Parametric Approach," Sustainability, MDPI, vol. 14(20), pages 1-18, October.
    13. Santos, Marllen & González, Mario, 2019. "Factors that influence the performance of wind farms," Renewable Energy, Elsevier, vol. 135(C), pages 643-651.
    14. Zhang, Ning & Zhao, Yu & Wang, Na, 2022. "Is China's energy policy effective for power plants? Evidence from the 12th Five-Year Plan energy saving targets," Energy Economics, Elsevier, vol. 112(C).
    15. Mehdi Toloo, 2021. "An Equivalent Linear Programming Form of General Linear Fractional Programming: A Duality Approach," Mathematics, MDPI, vol. 9(14), pages 1-9, July.
    16. Li, Feng & Zhang, Danlu & Zhang, Jinyu & Kou, Gang, 2022. "Measuring the energy production and utilization efficiency of Chinese thermal power industry with the fixed-sum carbon emission constraint," International Journal of Production Economics, Elsevier, vol. 252(C).
    17. Mahmoudabadi, Mohammad Zarei & Azar, Adel & Emrouznejad, Ali, 2018. "A novel multilevel network slacks-based measure with an application in electric utility companies," Energy, Elsevier, vol. 158(C), pages 1120-1129.
    18. Mehdi Toloo & Soroosh Nalchigar & Babak Sohrabi, 2018. "Selecting most efficient information system projects in presence of user subjective opinions: a DEA approach," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(4), pages 1027-1051, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    2. Arabi, Behrouz & Munisamy, Susila & Emrouznejad, Ali & Shadman, Foroogh, 2014. "Power industry restructuring and eco-efficiency changes: A new slacks-based model in Malmquist–Luenberger Index measurement," Energy Policy, Elsevier, vol. 68(C), pages 132-145.
    3. Arabi, Behrouz & Munisamy, Susila & Emrouznejad, Ali, 2015. "A new slacks-based measure of Malmquist–Luenberger index in the presence of undesirable outputs," Omega, Elsevier, vol. 51(C), pages 29-37.
    4. Behrouz Arabi & Susila Munisamy Doraisamy & Ali Emrouznejad & Alireza Khoshroo, 2017. "Eco-efficiency measurement and material balance principle: an application in power plants Malmquist Luenberger Index," Annals of Operations Research, Springer, vol. 255(1), pages 221-239, August.
    5. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
    6. Zhou, Haibo & Yang, Yi & Chen, Yao & Zhu, Joe, 2018. "Data envelopment analysis application in sustainability: The origins, development and future directions," European Journal of Operational Research, Elsevier, vol. 264(1), pages 1-16.
    7. Halkos, George & Petrou, Kleoniki Natalia, 2019. "Treating undesirable outputs in DEA: A critical review," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 97-104.
    8. Lampe, Hannes W. & Hilgers, Dennis, 2015. "Trajectories of efficiency measurement: A bibliometric analysis of DEA and SFA," European Journal of Operational Research, Elsevier, vol. 240(1), pages 1-21.
    9. Halkos, George & Petrou, Kleoniki Natalia, 2018. "A critical review of the main methods to treat undesirable outputs in DEA," MPRA Paper 90374, University Library of Munich, Germany.
    10. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    11. Gómez-Calvet, Roberto & Conesa, David & Gómez-Calvet, Ana Rosa & Tortosa-Ausina, Emili, 2014. "Energy efficiency in the European Union: What can be learned from the joint application of directional distance functions and slacks-based measures?," Applied Energy, Elsevier, vol. 132(C), pages 137-154.
    12. Li, Feng & Zhang, Danlu & Zhang, Jinyu & Kou, Gang, 2022. "Measuring the energy production and utilization efficiency of Chinese thermal power industry with the fixed-sum carbon emission constraint," International Journal of Production Economics, Elsevier, vol. 252(C).
    13. Victoria Wojcik & Harald Dyckhoff & Marcel Clermont, 2019. "Is data envelopment analysis a suitable tool for performance measurement and benchmarking in non-production contexts?," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 559-595, December.
    14. Mushtaq Taleb & Ruzelan Khalid & Ali Emrouznejad & Razamin Ramli, 2023. "Environmental efficiency under weak disposability: an improved super efficiency data envelopment analysis model with application for assessment of port operations considering NetZero," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6627-6656, July.
    15. Tenente, Marcos & Henriques, Carla & da Silva, Patrícia Pereira, 2020. "Eco-efficiency assessment of the electricity sector: Evidence from 28 European Union countries," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 293-314.
    16. Jahangoshai Rezaee, Mustafa & Moini, Alireza & Makui, Ahmad, 2012. "Operational and non-operational performance evaluation of thermal power plants in Iran: A game theory approach," Energy, Elsevier, vol. 38(1), pages 96-103.
    17. Zhang, Bin & Lu, Danting & He, Yan & Chiu, Yung-ho, 2018. "The efficiencies of resource-saving and environment: A case study based on Chinese cities," Energy, Elsevier, vol. 150(C), pages 493-507.
    18. Abbas Mardani & Dalia Streimikiene & Tomas Balezentis & Muhamad Zameri Mat Saman & Khalil Md Nor & Seyed Meysam Khoshnava, 2018. "Data Envelopment Analysis in Energy and Environmental Economics: An Overview of the State-of-the-Art and Recent Development Trends," Energies, MDPI, vol. 11(8), pages 1-21, August.
    19. Cordero Ferrera, Jose Manuel & Alonso Morán, Edurne & Nuño Solís, Roberto & Orueta, Juan F. & Souto Arce, Regina, 2013. "Efficiency assessment of primary care providers: A conditional nonparametric approach," MPRA Paper 51926, University Library of Munich, Germany.
    20. Long, Xingle & Wu, Chao & Zhang, Jijian & Zhang, Jing, 2018. "Environmental efficiency for 192 thermal power plants in the Yangtze River Delta considering heterogeneity: A metafrontier directional slacks-based measure approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3962-3971.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:111:y:2016:i:c:p:722-735. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.