Enhancing Resource Utilization Efficiency: Integrated Assessment of Water and Energy Efficiency in Chinese Manufacturing Enterprises

Lu Chen, Chenyang Shuai, Xi Chen, Jingran Sun and Bu Zhao

Business Strategy and the Environment, 2025, vol. 34, issue 6, 6670-6685

Abstract: Water and energy systems are deeply interconnected, making their unified quantitative assessment essential for enhancing water–energy efficiency (WEE). However, such assessments are rarely conducted. This study leverages data from 22,320 manufacturing enterprises in China and applies the Super‐SBM model to comprehensively evaluate their WEE. The results indicate a stratified distribution of WEE among Chinese manufacturing enterprises, with significant efficiency disparities between high‐ and low‐performing enterprises and an overall low efficiency level. Eastern coastal regions outperform central and western regions in WEE, with the northwestern region trailing behind. More than 90% of major industries fall below the average WEE level, with only three industries—tobacco manufacturing, instrument manufacturing, and waste resource utilization—exceeding the average. Microenterprises demonstrate the highest efficiency levels, with efficiency initially declining and then improving as enterprise size increases. This study provides empirical evidence and policy recommendations to improve resource efficiency, thereby supporting the green transformation and sustainable development of China's manufacturing sector.

Date: 2025
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