Why Are Power Plants in India Less Efficient Than Power Plants in the United States?
Hei Sing (Ron) Chan, Maureen L. Cropper, Kabir Malik
American Economic Review · 2014 · Volume 104 · Issue 5
Abstract
India's coal-fired generating capacity doubled between 1990 and 2010 and currently accounts for 70 percent of electricity produced. Despite this, thermal efficiency at state-owned coal-fired power plants in India is significantly lower than at plants in the United States. When matched on age and capacity, heat input per kWh was 8 percent higher at Indian plants between 1997 and 2009. This can only partly be explained by the lower heat content of Indian coal. Electricity sector restructuring in the United States improved thermal efficiency at investor-owned plants; however, electricity sector restructuring in India has yet to improve thermal efficiency at state-owned coal-fired power plants.
Keywords
Production, Cost, Capital, Total Factor, and Multifactor Productivity, Capacity, Public Enterprises, Public-Private Enterprises, Electric Utilities, Industry Studies: Utilities and Transportation: Government Policy, Economic Development: Agriculture, Natural Resources, Energy, Environment, Other Primary Products, Energy: Demand and Supply, Prices, Energy: Government Policy
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