Abstract

In this paper, we analyze the technical eciency of CO 2 reduction potentials of German power and heat plants, using a non-parametric sequential Data Envelopment Analysis. We apply a metafrontier framework to evaluate plant-level eciencies in the transformation of inputs into desirable (energy) and undesirable (CO2 emissions) outputs, taking into account dierent fossil fuel generation technologies. We dispose of a unique data set for coal-, lignite-, gas- and biomass-red power plants from 2003 through 2010 that provides an unbalanced panel of 1459 observations. We nd intra-group dierences within energy generation technology, but natural gas red power plants clearly have the highest eciency. Furthermore, the analysis points to signicant savings potentials for CO 2 and fuel-input.

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