Measuring variations in efficiency and its extension, eco-efficiency, during a restructuring period in different industries has always been a point of interest for regulators and policy makers. This paper assesses the impacts of restructuring of procurement in the Iranian power industry on the performance of power plants. We introduce a new slacks-based model for Malmquist-Luenberger (ML) Index measurement and apply it to the power plants to calculate the efficiency, eco-efficiency, and technological changes over the 8-year period (2003-2010) of restructuring in the power industry. The results reveal that although the restructuring had different effects on the individual power plants, the overall growth in the eco-efficiency of the sector was mainly due to advances in pure technology. We also assess the correlation between efficiency and eco-efficiency of the power plants, which indicates a close relationship between these two steps, thus lending support to the incorporation of environmental factors in efficiency analysis.
Bibliographical noteNOTICE: this is the author’s version of a work that was accepted for publication in Energy policy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Arabi, B, Munisamy, S, Emrouznejad, A & Shadman, F, 'Power industry restructuring and eco-efficiency changes: a new slacks-based model in Malmquist-Luenberger Index measurement' Energy policy, vol 68 (2014) DOI 10.1016/j.enpol.2014.01.016
- data envelopment analysis
- eco-efficiency measurement
- Malmquist-Luenberger index