A research on productivity change and efficiency determinants of Chinese power generation industry: In view of parametric approach

Author(s): Hongzhou Li, Tao Zou

This paper employs B-C (95) model to conduct a parametric efficiency analysis with a panel data set covering 27 provinces, municipalities and autonomous regions in the period from 2000 to 2010. Results show that the productivity of Chinese power generation industry increased by 1.37 percent per year on average and the majority of the growth came from technical progress. Our empirical study also shows coal-electricity pricing linkage scheme had little impact on power plants’ motivation to improve efficiency.

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