Journal Article

Environmental Technical Efficiency, Technology Gap and Shadow Price of Coal-fuelled Power Plants in China: A Parametric Meta-frontier Analysis


  • DU
  • L.
  • Hanley
  • A.
  • Zhang
  • N.
Publication Date

In this paper, we propose a new meta-frontier estimation method to investigate the environmental technical efficiency and carbon abatement cost of power plants in China taking the technological heterogeneities into consideration. This study is based on a plant-level cross-sectional data set comprising 648 observations for the year 2008. Results show that, state-owned power plants are least efficient relative to the meta-frontier. A further 44 percent of total CO2 emissions can be cut if all power plants are completely efficient. Additionally, the group of state-owned power plants is faced with the lowest cost to marginal CO2 abatement.

Kiel Institute Expert


JEL Classification
Q52, Q54, Q58

Key Words

  • Chinese power plant
  • Environmental technical efficiency
  • Meta-frontier
  • Parametric Estimation
  • Shadow Price

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