Comparative study on efficiency performance of listed coal mining companies in China and the US

Continually rising energy prices in global markets highlights a serious concern about the need to improve energy efficiency and the efficiency in energy sector in many countries. China, as one of the fastest growing countries in the world and the largest coal producer, has high coal consumption but a low recovery rate of coal utilization. Coal efficiency and the efficiency in coal industry have therefore attracted a great deal of attention from Chinese policy makers, coal firms and academics. This study attempts to compare the relative technical efficiency performance of listed coal mining companies in China and the US using CCR and BCC models in the advanced DEA linear programming. The results show that the level of relative efficiency in Chinese coal mining enterprises, regardless of total technical efficiency or decomposed pure technical and scale efficiency, is much lower than in American coal firms. The study also highlights the input resources that cause the inefficiency of Chinese coal mining companies. Furthermore, in-depth discussion and analysis of how the institutional environments of the two countries could cause the differences are provided. Crown Copyright (C) 2009 Published by Elsevier Ltd. All rights reserved.