Incentivizing sustainable development
The impact of a recent policy reform on electricity production efficiency in China
Bibliographic Data
| ID | 12306501 |
|---|---|
| Authors | Fan Li (0000-0002-7481-0394, China Center for Special Economic Zone Research Shenzhen University Shenzhen Guangdong China), Jiajia Xie (0009-0002-1930-2968, Department of Finance, College of Economics Shenzhen University Shenzhen Guangdong China), Wenche Wang (0000-0003-0320-1476, Sport Management, School of Kinesiology University of Michigan Ann Arbor Michigan, corresponding author) |
| Year | 2019 |
| Volume | 27 |
| Issue | 4 |
| Pages | 770-780 |
| Publication date | 2019-03-20 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Sustainable Development (JOURNAL) |
| Journal identifiers | ISSN: 0968-0802 • E-ISSN: 1099-1719 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/sd.1942 |
| OpenAlex | W2922858082 |
| Language | EN |
| Citations received | 1 |
| References cited | 36 |
China's rapid economic growth has tremendously accelerated its energy use, calling for a more sustainable supply of scarce and nonrenewable energy. Using a firm‐level dataset of 30 major Chinese electricity utilities from 2010 to 2014, this paper applies a stochastic frontier analysis to determine the utilities' technical efficiency, incorporating their operational environments related to a recent policy reform to encourage sustainable development. Our main findings are (a) state ownership, consumer density, and a chief executive officer with a science and engineering background are factors that can improve technical efficiency; (b) asset‐related subsidy increases efficiency whereas income‐related subsidy lowers efficiency; and (c) the five largest regional electricity generation firms exhibit above‐average efficiency levels. These results provide evidence that supports the recent Chinese policy reform. The findings also suggest that electricity generation efficiency, which is essential to sustainable economic development, can be improved through performance‐based regulation and incentives
Business · China · Economics · Efficient energy use · Electricity · Electricity generation · Environmental economics · Incentive · Industrial organization · Market economy · Microeconomics · Natural resource economics · Power (physics · Production (economics · Stochastic frontier analysis · Subsidy · Sustainable development · Efficiency Analysis Using DEA · Energy, Environment, Economic Growth · Fiscal Policy and Economic Growth
| Citations per year | 0.17 |
|---|---|
| Citation span | 2020 - 2020 (1) |
| Highly cited | No |