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Total Factor Energy Efficiency of China’s Thermal Power Industry

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  • Ying Feng

    (School of Economics & Management, Northwest University, Xi’an 710069, China
    Business College, Northwest University of Political Science and Law, No.1 Xuefu Avenue, Guodu Education and Technology Industrial Zone, Chang An District, Xi’an 710122, China)

  • Ching-Cheng Lu

    (Department of Economics, Soochow University, No.56, Sec. 1, Kueiyang St., Taipei City 10048, Taiwan)

  • I-Fang Lin

    (Department of Economics, Soochow University, No.56, Sec. 1, Kueiyang St., Taipei City 10048, Taiwan)

  • An-Chi Yang

    (Department of Economics, Soochow University, No.56, Sec. 1, Kueiyang St., Taipei City 10048, Taiwan)

  • Po-Chun Lin

    (Chung-Hua Institution for Economic Research, No.75, Changhsing St., Taipei 10672, Taiwan)

Abstract

Coal-based thermal power generation has long been the main source of power generation in the mainland of China. The efficiency of power generation is an important factor that determines the energy conservation and emission reduction as well as the sustainable development of the power industry in China. By comparing the regional differences of 30 provinces in the mainland from 2013 to 2017, this study uses the Super-DDF model and the TFEE to comprehensively evaluate the energy efficiency of thermal power generation. Empirical results: Overall efficiency: eastern efficiency (1.181) is the highest, followed by western (0.956), central (0.951) and northeastern (0.926). Total factor energy efficiency: eastern efficiency (0.923) is the highest, followed by western (0.754), central (0.742) and northeastern (0.710). The government and power industry managers should fully consider the regional differences in the field of thermal power generation when formulating policies so as to improve the power efficiency and promote the green development of power industry in China. Based on the analysis results, although the coal-fired power industry is more mature than other alternative energy industries, the expansion of thermal power generation cannot be considered if CO 2 emissions are to be reduced. Additionally, the market share and competitiveness of the local power industry can be increased based on the different conditions of the resource endowments of each region.

Suggested Citation

  • Ying Feng & Ching-Cheng Lu & I-Fang Lin & An-Chi Yang & Po-Chun Lin, 2022. "Total Factor Energy Efficiency of China’s Thermal Power Industry," Sustainability, MDPI, vol. 14(1), pages 1-16, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:1:p:504-:d:717144
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    References listed on IDEAS

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    Cited by:

    1. Ya Wu & Yin Liu & Minglong Zhang, 2023. "How Does Digital Finance Affect Energy Efficiency?—Characteristics, Mechanisms, and Spatial Effects," Sustainability, MDPI, vol. 15(9), pages 1-24, April.

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