Abstract
This paper measured the economic and unified efficiency of 24 electric power supply companies in China. With the development of a low carbon economy, further requirements for energy-saving and emission-reducing have been put forward for electric power supply companies. In this case, we considered the desirable (good) outputs (e.g., electricity sale amount) and undesirable (bad) outputs (e.g., line loss) in evaluating the performance of power supply companies. We combined the unified efficiency data envelopment analysis (DEA) model and the super-efficiency DEA model to create tge USDEA model, calculating companies’ unified efficiency. The unified efficiency DEA model can easily incorporate both desirable and undesirable outputs in a unified analytical structure. The super-efficiency data envelopment analysis model can make a comparison among various efficient decision making units (DMUs). Our results showed that the electric power supply companies of Hebei, Qinghai, Ningxia, Beijing and Shanghai achieved the highest levels of unified efficiency during the observed period (2003–2010), which differed from the economic efficiency results. The results meant that using unified efficiency to evaluate power supply companies will motivate them to care more about social and environmental benefit besides economic benefit.
Highlights
With rapid growth of the economy and support from foreign countries, China’s electric power industry has entered a new stage
In order to solve this problem, we proposed a new model: the unified super data envelopment analysis (DEA) (USDEA) model, which is a combination of unified efficiency DEA model (Model (6)) and the super-efficiency DEA model (Model (2))
Unified super DEA Model (7) computes the score of the decision making units (DMUs) by removing itself from constraints, which is realized by letting the j ≠ k in the formula. s is the slack variable related to desirable output. s is the slack variable related to undesirable output
Summary
With rapid growth of the economy and support from foreign countries, China’s electric power industry has entered a new stage. China has achieved second in the world in electric power generation capacity and first in transmission line and transformation capacity. The economic benefits, such as investment revenue rate and total production value, are usually used as the targets of performance evaluation of Chinese electric power supply companies. In order to achieve this, we need to measure the unified performance of electric power supply companies, which is important for comparing traditional economic performance. We measured the performance of Chinese electric power supply companies with the consideration of energy saving by a proposed DEA approach, the unified super data envelopment analysis (USDEA) approach, which is a combination of unified efficiency data envelopment analysis (DEA) model and the super-efficiency DEA model. The last section made conclusions and discussed the implications of our empirical results
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