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Power industry as a bottleneck industry , good or bad development is directly related to the healthy development of the national economy as a whole . The level of efficiency of the power industry , a direct impact on the national economy resources configuration fundamental role to play . Therefore, the study of the efficiency of the power industry , play such a resource for our country , capital relative lack of big countries , to speed up the reform of the power industry , the pace of development has enormous economic and practical significance of the ongoing power reform assessment guiding role . In this paper, the power industry statistics , data envelopment analysis (DEA) method , with DEAP software , estimates from the two aspects of the level of efficiency of the electric power industry . On the one hand , the use of panel data analysis of the changes in the 2002-2004 production efficiency of the power industry in China ; the other hand, the use of cross-sectional data , the efficiency of the power industry in 2004 , China 's 30 provinces, municipalities and autonomous regions to be evaluated and The proposed optimization scheme . Studies the following two conclusions : the first from 2002 to 2004 , the level of efficiency of China 's power industry has increased , which is due to technological progress ; Second , the efficiency of power industry exists great difference , and the vast majority of the power industry in increasing returns to scale interval . Therefore , by expanding the size of the industry to enhance the level of efficiency .
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