Energy and environmental efficiency measurement of China's industrial sectors: A DEA model with non-homogeneous inputs and outputs

Jie Wu, Mingjun Li, Qingyuan Zhu, Zhixiang Zhou and Liang Liang

Energy Economics, 2019, vol. 78, issue C, 468-480

Abstract: Environmental problems brought by industry are attracting extensive attention so a comprehensive analysis of industrial environmental performance is increasingly important. However, the comparison of industrial sector efficiencies is complicated by the fact that the natural resources consumed and/or the pollutants discharged by each sector may differ. In this paper, we extend the DEA model to consider two-sided non-homogeneous problems, handling DMU sets that have non-homogeneity in both inputs and outputs. This is different from the previous researches which generally focus on regional data to avoid non-homogeneity. Today environmental reform and energy conservation in various industrial sectors are both parts of the basic state policy of China. The empirical results show that: (1) Sectors' efficiencies are still low and unbalanced. The Recycling and Disposal of Waste department achieves the best energy saving and emission reduction efficiency. (2) 38 sectors can be clustered into four groups and set new benchmark in each group. (3) The overall efficiency of 38 industrial sectors in China maintained a rising trend in five years. With this more realistic analysis of environmental efficiency, the Chinese government can make more informed decisions to realize sustainable industrial development.

Keywords: Non-homogeneous DMUs; Data envelopment analysis; Environmental efficiency; Energy conservation; China's industrial sectors (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:78:y:2019:i:c:p:468-480

DOI: 10.1016/j.eneco.2018.11.036

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