Journal
ENERGY POLICY
Volume 38, Issue 8, Pages 4440-4444Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.enpol.2010.03.075
Keywords
Environment; Electricity; Nonparametric modeling
Funding
- ESRC Electricity Policy Research Group
- Economic and Social Research Council [RES-152-25-1002] Funding Source: researchfish
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Different from previous efficiency researches, which normally assume a uniform disposability for all undesirable outputs in a production process, this paper proposes a model that distinguishes weak and strong disposability assumptions among various undesirable outputs based on their respective technical features. The paper illustrates the approach using a research sample covering 582 base-load Chinese coal-fired power plants in 2002. The final results show that imposing the technically correct disposability features on undesirable outputs makes a significant difference to the final efficiency evaluation. This suggests the necessity of properly distinguishing disposability features among undesirable outputs in a production process in efficiency models. (C) 2010 Elsevier Ltd. All rights reserved.
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