Power industry restructuring and eco-efficiency changes: A new slacks-based model in Malmquist–Luenberger Index measurement

Abstract

Measuring variations in efficiency and its extension, eco-efficiency, during a restructuring period in different industries has always been a point of interest for regulators and policy makers. This paper assesses the impacts of restructuring of procurement in the Iranian power industry on the performance of power plants. We introduce a new slacks-based model for Malmquist-Luenberger (ML) Index measurement and apply it to the power plants to calculate the efficiency, eco-efficiency, and technological changes over the 8-year period (2003-2010) of restructuring in the power industry. The results reveal that although the restructuring had different effects on the individual power plants, the overall growth in the eco-efficiency of the sector was mainly due to advances in pure technology. We also assess the correlation between efficiency and ecoefficiency of the power plants, which indicates a close relationship between these two steps, thus lending support to the incorporation of environmental factors in efficiency analysis.

Assessing Green Development Efficiency of Municipalities and Provinces in China Integrating Models of Super-Efficiency DEA and Malmquist Index

“…While attributing to the limitation of scope, present research shows that the Malmquist Index is a potentially powerful tool for interdisciplinary environmental impacts analysis [29]. The Malmquist Index has been frequently used for accounting for the changes in policy efficiency; meanwhile, the characteristics of which potentially offer many advantages for assessing the multidimensional environmental impacts that may vary over time [28,29]. Combining the Data Envelopment Analysis (DEA) method with linear programming method of the parameters, Malmquist index approach is to measure the productivity changes from the angle of multi-input and output.…”

“…Moreover, in order to further evaluate and compare the regions whose green development efficiency value is equal as 1 in the CCR-DEA model, the Super-Efficiency-CCR-DEA model [25][26][27] is introduced. For a holistic and dynamic approach, according to the panel data of 31 regions in China for five continuous years, we adopt the Malmquist Index Approach, which has been regularly applied together with the DEA model in recent studies [28,29], to embody the transformations of different regions in the Chinese mainland. Finally, from the substantial results, we may analyze the problems we are facing in achieving regional green development and explore the optimal pathway to reaching it.…”

Green Total Factor Productivity Growth and Its Determinants in China’s Industrial Economy

“…However, the conventional DDF and ML index have some drawbacks, and thus various improved methods are being developed to meet the needs of research, such as the non-radial DDF [25], the slack-based measure (SBM) [26][27][28], the Metafrontier ML index [29][30][31], the global ML index [32,33], etc. Each improved method has their own advantages, and among them, the global ML (GML) productivity index proposed by Oh [32] is circular and can overcome the potential linear programming infeasibility problem in measuring cross-period DDFs, which has been widely used in the studies of productivity growth under the constraints of energy and environment in recent years.…”

Low Carbon Economy Performance Analysis with the Intertemporal Effect of Capital in China

“…It is used to empirically measure productive efficiency of decision-making units (DMUs). Moreover, the low-carbon economy performance evaluation by TFP has rapidly expanded to include carbon emission calculations [11][12][13], carbon emission influence analysis [14][15][16], industrial carbon emission [17][18][19][20], and carbon emission reduction [21][22][23][24]. Meanwhile, regional diversity plays a key role in the processing of low-carbon emission transformation.…”