The approach to realizing the potential of emissions reduction in China: An implication from data envelopment analysis

Chao Feng, Hua Zhang and Jian-Bai Huang

Renewable and Sustainable Energy Reviews, 2017, vol. 71, issue C, 859-872

Abstract: By proposing a three-hierarchy meta-frontier data envelopment analysis (DEA), this paper first decomposes CO2-emissions efficiency and the potential for emissions reduction into the following three components: structural, technical, and management. Based on these components, we then conduct an empirical analysis of China’s total-factor CO2-emissions efficiency, its potential for CO2-emissions reduction, and its corresponding implementation path. The results show that CO2-emissions efficiency in Mainland China is relatively low because of structural inefficiency, technical inefficiency, and management inefficiency. The Chinese government is expected to realize a large quantity of CO2-emissions reduction potential (nearly 40% of the current total CO2-emissions) through adjusting the industrial structure, narrowing the technology gap among regions, promoting the reform of marketization, and strengthening environmental regulation. The causes of CO2-emissions inefficiency and the distribution of potential reductions in emissions show a distinct spatial difference characteristic. Therefore, this paper also formulates emissions-reduction strategies for China's 30 provinces according to their specific situations, noting the direction of the industrial structure adjustment and the path to improving CO2-emissions efficiency.

Keywords: Meta-frontier DEA; Structure adjustment; Regional balance; Market-oriented reform (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (27)

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DOI: 10.1016/j.rser.2016.12.114

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