Environmental energy efficiency of China's regional economies: A non-oriented slacks-based measure analysis

Ning Zhang, Yongrok Choi

Research output: Contribution to journalArticlepeer-review

235 Scopus citations

Abstract

This paper proposes two environmental energy efficiency indices, the pure energy efficiency and scale efficiency based on the slacks-based measure of efficiency in data envelopment analysis (SBM-DEA). These two indices are used to measure energy efficiency by incorporating three undesirable outputs-carbon dioxide, sulfur dioxide, and Chemical Oxygen Demand-in China's regional economies between 2001 and 2010. The empirical results show most provinces were not energy efficient, due primarily to pure energy inefficiency. There exists a regional unbalance in terms of the environmental energy efficiency. Results support the Porter hypothesis, which indicates that stricter environmental regulations can improve efficiency and encourage innovation. In addition, undesirable outputs had a significant effect on energy efficiency measurements.

Original languageEnglish
Pages (from-to)225-234
Number of pages10
JournalSocial Science Journal
Volume50
Issue number2
DOIs
StatePublished - Jun 2013

Keywords

  • China
  • Energy efficiency
  • SBM-DEA
  • Undesirable outputs

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