Cost efficiency of Japanese steam power generation companies: A Bayesian comparison of random and fixed frontier models

A. George Assaf, Carlos Pestana Barros, Shunsuke Managi

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

This study analyses and compares the cost efficiency of Japanese steam power generation companies using the fixed and random Bayesian frontier models. We show that it is essential to account for heterogeneity in modelling the performance of energy companies. Results from the model estimation also indicate that restricting CO2 emissions can lead to a decrease in total cost. The study finally discusses the efficiency variations between the energy companies under analysis, and elaborates on the managerial and policy implications of the results.

Original languageEnglish
Pages (from-to)1441-1446
Number of pages6
JournalApplied Energy
Volume88
Issue number4
DOIs
Publication statusPublished - 2011 Apr

Keywords

  • Bayesian
  • Fixed frontier model
  • Japan
  • Random frontier model
  • Steam power generating companies

ASJC Scopus subject areas

  • Building and Construction
  • Energy(all)
  • Mechanical Engineering
  • Management, Monitoring, Policy and Law

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