Efficiency Measurement of Lignite-Fired Power Plants in Greece Using a DEA-Bootstrap Approach

Abstract

The measurement of power plant efficiency is of great importance for decision makers in order to formulate policies. The purpose of this paper is to analyze the performance of lignite-fired power plants in Greece using data envelopment analysis (DEA) and bootstrap. This research develops DEA-based efficiency metrics based on data from lignite-fired power plants in 2018 and assesses if there are performance disparities between facilities that have been closed or will be closed and plants that are still in operation. The DEA bootstrap results suggest that the power plants are considerably less efficient than what the initial single-DEA efficiency estimates suggested, and additionally, operating lignite-fired power plants are more efficient than those that have already been shut down or are about to be. Furthermore, there is evidence that age may have a detrimental effect on efficiency.