A multi factor Malmquist [formula omitted] performance indices: Evidence from Sub Saharan African public thermal power plants

Abstract

About 70% of Sub Saharan Africa’s (SSA) electricity generation comes from fossil fuels. However, the overdependence on these resources has contributed to the increasing global temperature levels leading to an annual average of 10%–13% decline in GDP per capita growth in the region. Besides, SSA’s contribution to Climate Change is marginal yet recognized as the hardest hit in the world. Therefore, considering technology heterogeneity, the study applies Metafrontier non-radial Malmquist index of CO2 emission (MNMCPI) to estimate the changes in the performance of CO2 emission and its decompositions in public thermal power plants across 18 SSA countries over 2005–2016 year period. The results depict that, averagely, the CO2 emission performance changes progressed slightly by 0.3% over the sample period, largely due to technological progress. Regionally, West Africa has the highest MNMCPI. Southern Africa emerged as the technology leader among all regions. The technical efficiency change index decline in all regions. Targeted policy implications are provided to enhance the transfer of advanced technologies and management experience to minimize CO2 emissions.