Every country’s power generation sector is highly controlled by the government since it is closely related to the country’s economic development and environmental protection. This study discusses the efficiency of power corporations and investigates the relationship between public governance and the electricity power industry’s efficiency in China and Taiwan. We find that:
(i) Only half of the six power corporations in China and Taiwan belonged to Green Enterprises in 2010
(ii) The production efficiency and environmental efficiency in Taiwan’s electrical power industry have always been superior to those in China’s electrical power industry
(iii) In 2010, the SO₂ emissions of all of China’s five power corporations were either close to or equal to optimal SO₂ emissions; however, the SO₂ emissions of Taiwan’s TPC departed from the optimal SO₂ emissions
(iv) Finally, we conclude that a good quality of public governance is helpful for improving the efficiency of China’s electrical power industry.