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    Convergence of operational efficiency in China's provincial power sectors

    Access Status
    Fulltext not available
    Authors
    Jaunky, Vishal
    Zhang, L.
    Date
    2016
    Type
    Journal Article
    
    Metadata
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    Citation
    Jaunky, V. and Zhang, L. 2016. Convergence of operational efficiency in China's provincial power sectors. Energy Journal. 37: pp. 3-27.
    Source Title
    Energy Journal
    DOI
    10.5547/01956574.37.SI1.vjau
    ISSN
    0195-6574
    School
    CBS International
    URI
    http://hdl.handle.net/20.500.11937/51089
    Collection
    • Curtin Research Publications
    Abstract

    © 2016 by the IAEE. All rights reserved.To analyze the operational efficiency of Chinese power sector at the provincial level, this paper studies the convergence of technical efficiency and productivity growth of electricity across 29 Chinese provinces during the period 1996-2008 using several convergence models. Depending on the model being employed, we find evidence of convergence of operational efficiency towards either a national steady state or towards their own steady states, with the latter process occurring more rapidly. In essence, our study provides evidence of negative effects of government intervention. Additionally, we use the nonparametric distribution dynamics approach to analyze intra-distributional dynamics of technical efficiency and productivity. We find some support for productivity convergence while technical efficiency does not converge for provinces with relatively low levels. We discuss policy implementations based on our model results and highlight several aspects for policy making in the power sector reforms currently being undertaken.

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