Analysis on dynamic energy efficiency in electric power industry of China

This paper aims to analyze the change of energy efficiency in the Chinese electric power industrial chain during the year of 2005-2010. It adopts DEA-based Malmquist index to measure energy efficiency change and utilize DEAP 2.1 software to obtain the results. The result shows that energy efficiency increases in a steady but slow way with a 3.4% average growth rate. Technical progress is the main cause of its improvement, while pure technical efficiency has limited contribution and scale efficiency is the major impediment. This paper contributes in finding out the causes of energy efficiency improvement and thereby providing recommendations.