Effectiveness of the policy of circular economy in China: A DEA-based analysis for the period of 11th five-year-plan

Hua-qing Wu, Yan Shi, Qiong Xia and Wei-dong Zhu

Resources, Conservation & Recycling, 2014, vol. 83, issue C, 163-175

Abstract: As a policy instrument for sustainable development, nationwide circular economy (CE) mode has been implemented for 7 years by the Chinese government, to overcome the dilemma among economic depression, energy shortage and environmental pollution. Unfortunately, few literatures contribute to checking the efficiency of regional CE and exploring the potential reasons in China, which will be practically helpful in guiding China's future development and providing reference for other developing countries that will adopt CE mode. Therefore, this paper puts forward the method of super-efficiency DEA window analysis to dynamically evaluate CE efficiency of 30 regions in China covering the period of 2005–2010. In line with the features of CE, the specific efficiency of three sub-systems, namely resource saving and pollutant reducing (RSPR) sub-system, waste reusing and resource recycling (WRRR) sub-system and pollution controlling and waste disposing (PCWD) sub-system, was assessed and compared regarding time series trend and spatial distribution, based on which, the comprehensive CE efficiency was totally ranked. The results show that, on the one hand, during the period of 2005–2010, Chinese CE efficiency slightly increased, implying a significant policy effect of CE; on the other hand, the efficiency of different sub-systems varies, with RSPR sub-system the lowest, and WRRR and PCWD sub-systems relatively higher. In terms of regional distribution, the efficiency of RSPR sub-system in the east area dominates during the whole period. However, for the other two sub-systems, from 2005 to 2007, the efficiency scores of the east fluctuate, then after 2007, the east area became more efficient than the central and the west areas. Throughout the study period, the RSPR sub-system in the central area stably maintains low efficiency, and so does the WRRR sub-system in the west area. The difference in regional efficiency of three sub-systems reflects the difficulty of carrying out CE policy in China comprehensively, which means that, promoting the adaptability of regional policy for local government and enhancing the coordination among various policies for China's central government are the key concerns for realizing sustainable development.

Keywords: Regional circular economy; Efficiency measurement; Data envelopment analysis (DEA); Window analysis; China (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:recore:v:83:y:2014:i:c:p:163-175

DOI: 10.1016/j.resconrec.2013.10.003

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