Abstract
In this study, we measure the total-factor energy efficiency under the constraint of environment of 13 coal-fired power plants in Hebei province over the period of 2009 to 2011 using the DEA model which based on the environmental production technology and the directional distance function. The results indicate that the total factor energy efficiency of sample power plants is still at sub-optimal level of around 0.84 and the efficiency is over estimated when without looking at environmental impacts. This indicates that undesirable outputs have a significant influence on energy efficiency of power plants. Poor performance of few power plants is due to their ability to manage the undesirable outputs need to be improved. In order to improve energy efficiency and achieve sustainable development, plants should concentrate on both energy saving and emission reduction at the same time.
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