Study On The Environmental Efficiency Of Power Generation Sector Based On Game-cross Efficiency Model

The core of China's power system reform is introducing competition mechanism to improve the overall operational efficiency of the industry.Because of the power system reform in 2002,the separation of government and enterprises,the separation of plants and grids,the separation of subsidiary business and primary business,the separation of power transmission and distribution,and the electric power bidding policy have been implemented successively.Since then,the monopoly of electric power enterprises was broken and the competitive electricity market was gradually formed.Meanwhile,the introduction of the concept of sustainable development has put forward higher requirements for the energy saving and emission reduction.The power industry then changes from pursuing of economic benefits purely to comprehensively considering the reduction of emissions and economic benefits.Under the increasingly fierce competition circumstance in the electricity market,how to improve the environmental performance of power enterprises and promote the overall environmental efficiency of power industry further are also urgent problems to be solved.This paper first combs the previous reforms and development of China's power system,analyzes the current situation of competition in the electricity market,and introduces the background of this paper.Then,it introduces the research method applied in this paper,including Game-cross Efficiency,System Generalized method of moments(SGMM),and Game-cross Malmquist index.The Game-cross Efficiency model is used to evaluate the static environmental efficiency of power generation sector in 30 provinces in China considering competition mechanism.Further,SGMM model is employed to explore the factors that may affect the environmental efficiency.After the evaluation of static environmental efficiency,Game-cross Malmquist index is used to measure the dynamic environmental efficiency of 16 power enterprises in China in depth,and the determinants regression analysis is carried out as well.The results indicate that,to improve the environmental efficiency of power generation sector,the government should consider more about the disparity of regional economic development,combine short-term and long-term factors,and carry out forward-looking work;It is inappropriate to blindly reduce the thermal power installation when optimizing the electricity structure,and clean energy incentive policy should be treated distinguishingly in different regions and implemented gradually;Energy saving and emission reduction technologies need to be improved;Market-oriented carbon emissions trading mechanism,to a certain extent,could encourage power companies to implement carbon dioxide emission reduction work.In the long run,it is helpful to improve the power sector's environmental efficiency,and promote the continuous development of power industry.