The Influence Analysis Of Environmental Regulation On Chinese Power Generation Industry Efficiency

Power generation industry is the foundation of the national economy and has been developing well after the introduction of market competition. Also, its environmental issues have attracted public’s attentions and the government has introduced some measures of environmental regulations since power industry is still dominated by thermal power. Many scholars have studied the efficiency of the power industry, but few researchers study the powerful effect that the environmental regulation on the power industry. In older to make some policy suggestions for further development, this article analyzes the environmental regulation status and efficiency of the power generation industry and implements the generalized DEA model to make quantitative analysis before using a fixed effective model to research the environmental regulation effect on the efficiency.The research overview the power industry environmental regulations before introduce the efficiency of power generation industry. Then reveal the intensity of environmental regulation on the efficiency of the power generation industry.Empirical studies indicate that indicates that overall technical efficiency of power generation industry fluctuates with a corresponding move of economy. The regress results find that the environmental regulation impacts the efficiency of power generation industry significantly. If the intensity of regulation on power industry is greater, the level of the technical efficiency will be higher. Also, the regulations have long-term impact on the efficiency. The results show that environmental regulations play an important role on the technological and management improvement, and promote the whole industry’s production frontier. So government and enterprises should constantly improve the environmental regulations to achieve double objectives of environment protection and the power industry function well.