Measurement of Operational and Environmental Performance of the Coal-Fired Power Plants in India by Using Data Envelopment Analysis
In this study, the performance analyses of the twenty
five Coal-Fired Power Plants (CFPPs) used for electricity generation
are carried out through various Data Envelopment Analysis (DEA)
models. Three efficiency indices are defined and pursued. During the
calculation of the operational performance, energy and non-energy
variables are used as input, and net electricity produced is used as
desired output (Model-1). CO2 emitted to the environment is used as
the undesired output (Model-2) in the computation of the pure
environmental performance while in Model-3 CO2 emissions is
considered as detrimental input in the calculation of operational and
environmental performance. Empirical results show that most of the
plants are operating in increasing returns to scale region and Mettur
plant is efficient one with regards to energy use and environment.
The result also indicates that the undesirable output effect is
insignificant in the research sample. The present study will provide
clues to plant operators towards raising the operational and
environmental performance of CFPPs.
[1] Banker, R.D., A. Charnes and W. W. Cooper, 1984, Some models for
estimating technical and scale efficiencies in data envelopment analysis.
Management Science 30:1078–1092.
[2] Barros, C.P. and N.Peypoch, 2008, Technical efficiency of
thermoelectric power plants. Energy Economics 30: 3118-3127.
[3] CEA ,2009-2010), Annual report on the Review of performance of
thermal power stations, Central Electricity Authority, Ministry of Power,
India.
[4] Charnes, A., W.W. Cooper and E.Rhodes, 1978, Measuring the
efficiency of decision making units. European Journal of Operational
Research 2:429-444.
[5] Chitkara, P., 1999, A data envelopment analysis approach to evaluation
of operational inefficiencies in power generating units: A case study of
Indian power plants. IEEE Transactions on Power Systems 14:419-425.
[6] CO2 Baseline Database, Version 8.0, January 2013. Central Electricity
Authority (CEA), Ministry of Power, Government of India.
[7] Färe, R., S. Grosskopf and D. Tyteca, 1996, An activity analysis model
of the environmental performance of firms: application to fossil fuelfired
electric utilities. Ecological Economics 18:161-175.
[8] Färe, R.,S. Grosskopf and Jr, Carl A Pasurka.,2007,Pollution abatement
activities and traditional productivity. Ecological Economics 62: 673–
682.
[9] Farrell, M.J., 1957, The measurement of productive efficiency. Journal
of royal statistical society 120:7-24.
[10] Fleishman, R.,R. Alexander,S. Bretschneider and D. Popp,2009, Does
regulation stimulate productivity? The effect of air quality policies on
the efficiency of US power plants. Energy Policy 37:4574-4582.
[11] Ghosh, S., 2010, Status of thermal power generation in India-
Perspectives on capacity, generation and carbon dioxide emissions.
Energy Policy 38:6886–6899.
[12] Jaggi, B. and M.Freedman, 1992, An examination of the impact of
pollution performance on economic and market performance: pulp and
paper firms. Journal Business Finance Account 19:697-713.
[13] Korhonen, P. and M. Luptacik, 2004, Eco-efficiency analysis of power
plants: an extension of data envelopment analysis. European Journal of
Operational Research 154:437-46.
[14] Lam, P. and A. Shiu, 2001, A data envelopment analysis of the
efficiency of China’s thermal power generation. Utility Policy 10:75-83.
[15] Liu, C.H., S.J. Lin and C. Lewis, 2010, Evaluation of thermal power
plant operational performance in Taiwan by data envelopment analysis.
Energy Policy 38:1049-1058.
[16] Mandal,S.K and S.Madheswaran,2010,Environmental efficiency of the
Indian cement industry: An interstate analysis. Energy Policy 38:1108-
1118.
[17] Nag, B., 2006, Estimation of carbon baselines for power generation in
India: the supply side approach. Energy Policy 34:1399–1410.
[18] Odeck, J., 2008, How efficient and productive are road toll companies?
Evidence from Norway. Transport Policy 15: 232-241.
[19] Olatubi, W.O. and.E. Dismukes, 2000, A data envelopment analysis of
the levels and determinants of coal-fired electric power generation
performance. Utilities Policy 9: 47–59.
[20] Raczka, J., 2001, Explaining the performance of the heat plants in
Poland. Energy Economics 23:355-370.
[21] Raghuvanshi,S.P, A. Chandra and A.K.Raghav,2006,Carbon dioxide
emissions from coal based power generation in India. Energy
Conversion and Management 47:427–441.
[22] Ramanathan, R., 2003, An introduction to data envelopment analysis.
Sage Publication, Delhi.
[23] Sarica, K. and I. Or, 2007,Efficiency assessment of Turkish power plants
using data envelopment analysis. Energy, 32:1484-1499.
[24] Shnmugam, K.R. and P. Kulshreshtha, 2007, Efficiency analysis of coal
based thermal power generation in India during post-reform era.
International Journal of Global Energy Issues 23:15-28.
[25] Shrivastava, N., S.Sharma, and K.Chauhan, 2012, Efficiency assessment
and benchmarking of thermal power plants in India. Energy Policy
40:159-176.
[26] Singh, S.K., V.K. Bajpai and T.K. Garg, 2013a, Measuring productivity
change in Indian coal-fired electricity generation: 2003-2010.
International Journal of energy sector management 7:46-64.
[27] Singh, S.K. and V.K.Bajpai, 2013b, Estimation of operational efficiency
and its determinants using DEA: The case of Indian coal fired power
plants. International Journal of energy sector management 7:409-429.
[28] Sozen, A., Alp, I. and A. Ozdemir, 2010, Assessment of operational and
environmental performance of the thermal power plants in Turkey by
using data envelopment analysis. Energy Policy 38:6194-6203.
[29] Sueyoshi T, and M.Goto, 2011, Methodological comparison between
two unified (operational and environmental) efficiency measurements
for environmental assessment. European Journal of Operational
Research 210: 684-93.
[30] Sueyoshi, T., M. Goto and T.Ueno, 2010, Performance analysis of US
coal-fired power plants by measuring three DEA efficiencies. Energy
Policy 38:1675–1688. [31] TEDDY, 2009, Teri energy data directory and year book. TERI Press,
New Delhi.
[32] Thanassouils, E., 2001, Introduction to the theory and application of
data envelopment analysis: a foundation text with integrated software.
Norwell, Kluwer Academic Publishers.
[33] Tsolas, I.E., 2010, Assessing power stations performance using a DEAbootstrap
approach. International Journal of energy sector management
4:337-355.
[34] Tyteca, D., 1996, On the measurement of the environmental
performance of firms a literature review and a productive efficiency
perspective. Journal of Environmental Management 46: 281-308.
[35] Tyteca, D., 1997, Linear programming models for the measurement of
environmental performance of firms’ concepts and empirical results.
Journal of Productivity Analysis 8:183-97.
[36] Yang, H. and M. Pollitt, 2010, The necessity of distinguishing weak and
strong disposability among undesirable outputs in DEA: Environmental
performance of Chinese coal-fired power plants. Energy Policy 38:
4440-4444.
[37] Zhou, P. and B.W. Ang, 2008, Linear programming models for
measuring economy-wide energy efficiency performance.Energy Policy
36:2911–2916.
[38] Zhou, G., Chung, W., and X. Zhang, 2013, A study of carbon dioxide
emissions performance of China’s transport sector. Energy 50:1-13.
[39] Zhou, P., B.W. Ang and K.L. Poh, 2008a, A survey of data envelopment
analysis in energy and environmental studies. European Journal of
Operational Research 189:1–18.
[40] Zhou, P., B.W. Ang and K.L.Poh, 2008b, Measuring environmental
performance under different environmental DEA technologies. Energy
Economics 30:1-14.
[1] Banker, R.D., A. Charnes and W. W. Cooper, 1984, Some models for
estimating technical and scale efficiencies in data envelopment analysis.
Management Science 30:1078–1092.
[2] Barros, C.P. and N.Peypoch, 2008, Technical efficiency of
thermoelectric power plants. Energy Economics 30: 3118-3127.
[3] CEA ,2009-2010), Annual report on the Review of performance of
thermal power stations, Central Electricity Authority, Ministry of Power,
India.
[4] Charnes, A., W.W. Cooper and E.Rhodes, 1978, Measuring the
efficiency of decision making units. European Journal of Operational
Research 2:429-444.
[5] Chitkara, P., 1999, A data envelopment analysis approach to evaluation
of operational inefficiencies in power generating units: A case study of
Indian power plants. IEEE Transactions on Power Systems 14:419-425.
[6] CO2 Baseline Database, Version 8.0, January 2013. Central Electricity
Authority (CEA), Ministry of Power, Government of India.
[7] Färe, R., S. Grosskopf and D. Tyteca, 1996, An activity analysis model
of the environmental performance of firms: application to fossil fuelfired
electric utilities. Ecological Economics 18:161-175.
[8] Färe, R.,S. Grosskopf and Jr, Carl A Pasurka.,2007,Pollution abatement
activities and traditional productivity. Ecological Economics 62: 673–
682.
[9] Farrell, M.J., 1957, The measurement of productive efficiency. Journal
of royal statistical society 120:7-24.
[10] Fleishman, R.,R. Alexander,S. Bretschneider and D. Popp,2009, Does
regulation stimulate productivity? The effect of air quality policies on
the efficiency of US power plants. Energy Policy 37:4574-4582.
[11] Ghosh, S., 2010, Status of thermal power generation in India-
Perspectives on capacity, generation and carbon dioxide emissions.
Energy Policy 38:6886–6899.
[12] Jaggi, B. and M.Freedman, 1992, An examination of the impact of
pollution performance on economic and market performance: pulp and
paper firms. Journal Business Finance Account 19:697-713.
[13] Korhonen, P. and M. Luptacik, 2004, Eco-efficiency analysis of power
plants: an extension of data envelopment analysis. European Journal of
Operational Research 154:437-46.
[14] Lam, P. and A. Shiu, 2001, A data envelopment analysis of the
efficiency of China’s thermal power generation. Utility Policy 10:75-83.
[15] Liu, C.H., S.J. Lin and C. Lewis, 2010, Evaluation of thermal power
plant operational performance in Taiwan by data envelopment analysis.
Energy Policy 38:1049-1058.
[16] Mandal,S.K and S.Madheswaran,2010,Environmental efficiency of the
Indian cement industry: An interstate analysis. Energy Policy 38:1108-
1118.
[17] Nag, B., 2006, Estimation of carbon baselines for power generation in
India: the supply side approach. Energy Policy 34:1399–1410.
[18] Odeck, J., 2008, How efficient and productive are road toll companies?
Evidence from Norway. Transport Policy 15: 232-241.
[19] Olatubi, W.O. and.E. Dismukes, 2000, A data envelopment analysis of
the levels and determinants of coal-fired electric power generation
performance. Utilities Policy 9: 47–59.
[20] Raczka, J., 2001, Explaining the performance of the heat plants in
Poland. Energy Economics 23:355-370.
[21] Raghuvanshi,S.P, A. Chandra and A.K.Raghav,2006,Carbon dioxide
emissions from coal based power generation in India. Energy
Conversion and Management 47:427–441.
[22] Ramanathan, R., 2003, An introduction to data envelopment analysis.
Sage Publication, Delhi.
[23] Sarica, K. and I. Or, 2007,Efficiency assessment of Turkish power plants
using data envelopment analysis. Energy, 32:1484-1499.
[24] Shnmugam, K.R. and P. Kulshreshtha, 2007, Efficiency analysis of coal
based thermal power generation in India during post-reform era.
International Journal of Global Energy Issues 23:15-28.
[25] Shrivastava, N., S.Sharma, and K.Chauhan, 2012, Efficiency assessment
and benchmarking of thermal power plants in India. Energy Policy
40:159-176.
[26] Singh, S.K., V.K. Bajpai and T.K. Garg, 2013a, Measuring productivity
change in Indian coal-fired electricity generation: 2003-2010.
International Journal of energy sector management 7:46-64.
[27] Singh, S.K. and V.K.Bajpai, 2013b, Estimation of operational efficiency
and its determinants using DEA: The case of Indian coal fired power
plants. International Journal of energy sector management 7:409-429.
[28] Sozen, A., Alp, I. and A. Ozdemir, 2010, Assessment of operational and
environmental performance of the thermal power plants in Turkey by
using data envelopment analysis. Energy Policy 38:6194-6203.
[29] Sueyoshi T, and M.Goto, 2011, Methodological comparison between
two unified (operational and environmental) efficiency measurements
for environmental assessment. European Journal of Operational
Research 210: 684-93.
[30] Sueyoshi, T., M. Goto and T.Ueno, 2010, Performance analysis of US
coal-fired power plants by measuring three DEA efficiencies. Energy
Policy 38:1675–1688. [31] TEDDY, 2009, Teri energy data directory and year book. TERI Press,
New Delhi.
[32] Thanassouils, E., 2001, Introduction to the theory and application of
data envelopment analysis: a foundation text with integrated software.
Norwell, Kluwer Academic Publishers.
[33] Tsolas, I.E., 2010, Assessing power stations performance using a DEAbootstrap
approach. International Journal of energy sector management
4:337-355.
[34] Tyteca, D., 1996, On the measurement of the environmental
performance of firms a literature review and a productive efficiency
perspective. Journal of Environmental Management 46: 281-308.
[35] Tyteca, D., 1997, Linear programming models for the measurement of
environmental performance of firms’ concepts and empirical results.
Journal of Productivity Analysis 8:183-97.
[36] Yang, H. and M. Pollitt, 2010, The necessity of distinguishing weak and
strong disposability among undesirable outputs in DEA: Environmental
performance of Chinese coal-fired power plants. Energy Policy 38:
4440-4444.
[37] Zhou, P. and B.W. Ang, 2008, Linear programming models for
measuring economy-wide energy efficiency performance.Energy Policy
36:2911–2916.
[38] Zhou, G., Chung, W., and X. Zhang, 2013, A study of carbon dioxide
emissions performance of China’s transport sector. Energy 50:1-13.
[39] Zhou, P., B.W. Ang and K.L. Poh, 2008a, A survey of data envelopment
analysis in energy and environmental studies. European Journal of
Operational Research 189:1–18.
[40] Zhou, P., B.W. Ang and K.L.Poh, 2008b, Measuring environmental
performance under different environmental DEA technologies. Energy
Economics 30:1-14.
@article{"International Journal of Business, Human and Social Sciences:68868", author = "Vijay Kumar Bajpai and Sudhir Kumar Singh", title = "Measurement of Operational and Environmental Performance of the Coal-Fired Power Plants in India by Using Data Envelopment Analysis", abstract = "In this study, the performance analyses of the twenty
five Coal-Fired Power Plants (CFPPs) used for electricity generation
are carried out through various Data Envelopment Analysis (DEA)
models. Three efficiency indices are defined and pursued. During the
calculation of the operational performance, energy and non-energy
variables are used as input, and net electricity produced is used as
desired output (Model-1). CO2 emitted to the environment is used as
the undesired output (Model-2) in the computation of the pure
environmental performance while in Model-3 CO2 emissions is
considered as detrimental input in the calculation of operational and
environmental performance. Empirical results show that most of the
plants are operating in increasing returns to scale region and Mettur
plant is efficient one with regards to energy use and environment.
The result also indicates that the undesirable output effect is
insignificant in the research sample. The present study will provide
clues to plant operators towards raising the operational and
environmental performance of CFPPs.
", keywords = "Coal fired power plants, environmental performance,
data envelopment analysis, operational performance.", volume = "8", number = "12", pages = "3979-10", }
