Dynamic environmental efficiency analysis of China's power generation enterprises: a game cross-Malmquist index...

Since the power unbundling reform in 2002, China's power industry has been a typical sector moving towards marketization. The supply-side structural reform that began in 2015 has intensified the competition among China's power generation enterprises. In this context, this paper combines a data envelopment analysis (DEA) game cross-efficiency model with the Malmquist index approach to investigate the dynamic environmental efficiency of China's power generation enterprises in a competitive market. Furthermore, the system generalized method of moments (SYS-GMM) is employed to analyze the influences of factors on the dynamic environmental efficiency. The results show that: (1) Compared with the basic DEA Charnes-Cooper-Rhodes (CCR)-Malmquist index model, the DEA game cross-Malmquist index approach can enhance the discrimination among the decision making units (DMUs). (2) The change in the overall dynamic environmental efficiency of China's power generation enterprises mainly comes from the catch-up effect, while technological progress has not played a role as significant as expected. (3) The installed capacity growth rate, implementation of carbon emission trading pilots, economic growth rate, and enterprise ownership all affect the dynamic environmental performance of China's power generation enterprises during the study period.