Modeling eco-efficiency changes of heterogeneous firms with an application in power plants

The objective of power industry restructuring worldwide has been to enhance efficiency, hence providing an increased focus on efficiency measurement in power industries. Power generation which plays a key role in the power industry accounts for a noticeable share of emission generation amongst all power industry sectors. This would be costly not only for the sector itself, but also for the entire economy. Thus, the ecological impact of power generation should not be neglected in efficiency measurement. In addition, the non-homogeneous nature of power generation technologies has always been a barrier to drawing a complete picture of power generation industry efficiency or to compare the relative efficiency of different power plant technologies using methodologies such as Data Envelopment Analysis (DEA).