Efficiency Analysis of Electricity, Thermal Power Production and Supply Industries in China

Abstract

In this paper, the input-oriented distance function is applied to the efficiency analysis of China's electricity, thermal power production and supply industries. Due to the obvious gap between China's east, central and west, we use the metafrontier method to divide the data into three parts according to east, central and west. On the basis of the previous research, this paper makes some innovations in the estimation method, that is, using the two-stage linear programming method to estimate the common boundary input distance function. The results show that the technical efficiency of the eastern, central and western regions is significantly different, which is mainly reflected in that the technical efficiency of the eastern region is higher than that of the central and western regions, and the efficiency gap between the three regions shows no signs of narrowing during the "eleventh five-year plan" and "twelfth five-year plan". Therefore, the electricity, thermal power production and supply industries in central and western China still need to change the development mode and improve the development quality.