An Empirical Research on Efficiency and Deadweight Loss in Power Industry Based on the Reformation of Electricity System
KONG Ling-cheng1,OUYANG Lu-lu1, LI Zhong2
1.School Business,EastChinaUniversity of Science and Technology, Shanghai 200237, China; 2.Shanghai University of Finance and Economy, Shanghai 200433, China
Abstract:
The aim of Reformation of electricity system is to keep both the scale of natural monopoly and efficiency of competition. To calculate the industrial efficiency and the social welfare can estimate whether the reformation succeed or not. The paper studied the impact of reformation on electric power industry efficiency by applying DEA method, observed efficiency change by using Malmquist index and calculated Harberger Triangle and X-inefficiency to measure the degree of deadweight loss. The results show that efficiency of power industry hasn’t improved and the degree of deadweight loss caused by monopoly continues to rise after reformations. This paper puts forward to the way to introduce competition according to the results, and gives the feasible suggestions to enhance both scale benefit and competition efficiency for power system.
KONG Ling-cheng,OUYANG Lu-lu, LI Zhong.An Empirical Research on Efficiency and Deadweight Loss in Power Industry Based on the Reformation of Electricity System[J] Economic Survey, 2016,V33(4): 80-85