Estimation of productivity in Korean electric power plants: a semiparametric smooth coefficient model

Almas Heshmati*, Subal C. Kumbhakar, Kai Sun

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This paper analyzes the impact of load factor, facility and generator types on the productivity of Korean electric power plants. In order to capture important differences in the effect of load policy on power output, we use a semiparametric smooth coefficient (SPSC) model that allows us to model heterogeneous performances across power plants and over time by allowing underlying technologies to be heterogeneous. The SPSC model accommodates both continuous and discrete covariates. Various specification tests are conducted to assess the performance of the SPSC model. Using a unique generator level panel dataset spanning the period 1995-2006, we find that the impact of load factor, generator and facility types on power generation varies substantially in terms of magnitude and significance across different plant characteristics. The results have strong implications for generation policy in Korea as outlined in this study.

Original languageEnglish
Pages (from-to)491-500
Number of pages10
JournalEnergy Economics
Volume45
Early online date28 Aug 2014
DOIs
Publication statusPublished - Sep 2014

Bibliographical note

Supplementary data: http://dx.doi.org/10.1016/j.eneco.2014.08.019

Keywords

  • electricity generation
  • generator level panel data
  • semiparametric estimation
  • smooth varying coefficient model

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