Direkt zum Inhalt

Technical Efficiency and CO2 Reduction Potentials: An Analysis of the German Electricity and heat Generating Sector

Referierte Aufsätze Web of Science

Stefan Seifert, Astrid Cullmann, Christian von Hirschhausen

In: Energy Economics 56 (2016), S. 9-19


In this paper, we analyze the technical efficiency and CO2 reduction potentials of German power and heat plants, using a non-parametric sequential Data Envelopment Analysis. We apply a metafrontier framework to evaluate plant-level efficiency in the transformation of inputs into desirable (energy) and undesirable (CO2 emissions) outputs, taking into account different fossil fuel generation technologies. We use a unique data set of coal-, lignite-, gas- and biomass-fired power plants from 2003 through 2010 that provides an unbalanced panel of 1459 observations; the results are also checked against a balanced panel with a smaller number of observations. Although we find intra-group differences within energy generation technology, natural gas fired power plants clearly have the highest efficiency. Furthermore, the analysis points to significant savings potentials for CO2 and fuel-input, and derives policy conclusions for the ongoing electricity sector reformation.

Astrid Cullmann

Research Associate in the Energy, Transportation, Environment Department

JEL-Classification: L94;Q50;C14
Keywords: Electricity and heat generation, Non-parametric efficiency analysis, Germany, Panel 2003-1010