DEA of the efficiency of China's power industry

The power industry is one of the leading industries. In recent years, despite the rapid development of China's power industry, the analysis of the efficiency of the power sector is limited to some technical indicators which cannot fully reflect the efficiency level. In order to effectively address these issues, this paper uses the method of Data Envelopment Analysis (DEA). In this method, first of all, we need not subjectively set the index weight of each input and output indicators of the power sector, which can avoid human errors and ensure the objectivity of the evaluation results. What's more, it's easy to operate, using the approach of mathematical programming for data calculation. Besides, DEA model is not only able to tell whether the decision-making unit is effective or not, but can also further analyze the decision-making unit. Therefore, it can effectively evaluate the strengths and weaknesses of decision-making unit in terms of inputs and outputs.