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

Discussion Papers 1426, 33 S.

Stefan Seifert, Astrid Cullmann, Christian von Hirschhausen


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Published in: Energy Economics 56 (2016), 9-19


In this paper, we analyze the technical efficiency of 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 efficiencies in the transformation of inputs into desirable (energy) and undesirable (CO2 emissions) outputs, taking into account different fossil fuel generation technologies. We dispose of a unique data set for coal-, lignite-, gas- and biomass-fired power plants from 2003 through 2010 that provides an unbalanced panel of 1459 observations. We find intra-group differences within energy generation technology, but natural gas fired power plants clearly have the highest efficiency. Furthermore, the analysis points to significant savings potentials for CO2 and fuel-input.

Astrid Cullmann

Wissenschaftliche Mitarbeiterin in der Abteilung Unternehmen und Märkte

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