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A Study on Eco-efficiency in power plants using DEA Analysis

DEA 모형을 이용한 발전회사 환경효율성에 대한 연구

  • Han, Jung-Hee (Graduate School of business administration MOT-MBA program in Chonnam National University)
  • 한정희 (전남대학교 경영전문대학원 MOT-MBA 과정)
  • Received : 2013.05.01
  • Accepted : 2013.05.20
  • Published : 2013.05.31

Abstract

This study aims to provide power generating plants with eco-efficiency information. To implement the purposes, of study, both DEA(Data, Envelopment Analysis) model and interview were incorporated in terms of methodologies. To analyze the managerial efficiency, total labor cost and number of employees were considered as input factors. CO2, NOx, and water also were considered as input factors to analyze eco-efficiency. Both annual total power product and annual total revenue were used as output factors. CRS(Constant Return to Scale) and VRS(Variable Return to) model were facilitated in this analysis. According to the findings, most of the power plants were evaluated as 'Efficient'' taking into consideration of average value, both 0.928 from CCR model and 0.969 from VRS model. 7 DMUs including DMU3 and DMU12 are efficient out of 35 DMUs relatively, other DMUs are inefficient. For results of inefficient output factors distribution, it was found that inefficiency for NOx was marked relatively higher than CO2. In order to improve the eco-efficiency in the power plants in the long term, the target amount of Co2 as well as NOx reduction needs to be properly proposed in consideration of particularity of power plants. In the long run, renewable energy, alternative fuels should be adapted to reduce the eco-inefficient.

Keywords

DEA Analysis;CCR model;VRS model;Power plant industry;Environment efficiency