Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/125154
Authors: 
Seifert, Stefan
Year of Publication: 
2015
Series/Report no.: 
DIW Discussion Papers 1526
Abstract: 
While productivity growth in electricity generation is associated with multiple positive effects from an economic and environmental perspective, measuring it is challenging. This paper proposes a framework to estimate and decompose productivity growth for a sector characterized by multiple technologies. Using a metafrontier Malmquist decomposition and frontier estimation based on stochastic non-smooth envelopment of data (StoNED) allows for productivity estimation with few microeconomic assumptions. Additionally, evaluation of productivity at representative hypothetical units permits distribution-free analysis for the whole distribution of power plant sizes. The proposed framework is used to analyze a unique and rich dataset of coal, lignite, gas, and biomass-fired generators operating in Germany from 2003 to 2010. The results indicate stagnating productivity for the sector as a whole, technical progress for biomass plants, and very high productivity for gas-fired plants.
Subjects: 
Productivity estimation
Metafrontier Malmquist Decomposition
Stochastic Non-Smooth Envelopment of Data (StoNED)
Electricity and Heat Generation in Germany
2003-2010
JEL: 
D24
C14
O13
L94
Document Type: 
Working Paper

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