Productive Efficiency and Renewable Power Generation in the US Electricity Companies

This study measures the productive efficiency of 72 US electric power companies from 2013 to 2022 using a meta-frontier analysis of the data envelopment analysis (DEA) intermediate approach. The intermediate approach incorporates features of radial and non-radial DEA models. We classify the electric power companies according to the ratio of renewable power generation to total generation and examine differences in the efficiency levels among the groups. We find that companies with medium levels of renewable power generation ratios exhibit higher productive efficiency. From the results, this study discusses policy implications to promote balanced adoption of renewable power that can enhance the productive efficiency of companies.