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Total-factor energy efficiency evaluation of Chinese industry by using two-stage DEA model with shared inputs

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Abstract

Chinese industry has developed greatly since China implemented its “reform and opening-up” policy in 1978. With the rapid development of industry, the problems of growing energy consumption and environmental pollution are drawing increasing attention from government managers and scholars. This paper divides industrial systems into two stages, an energy utilization stage and a pollution treatment stage, for accurately evaluating the total-factor energy efficiency as well as the overall efficiency. We build a new two-stage data envelopment analysis model with shared inputs to open the “black box” of efficiency measurement in traditional energy efficiency methods. Applying the model to data for Chinese regions, we can display the advantages and disadvantages of these two stages of industry. The results show that (1) the performance of Chinese industry improved during the years 2006–2010; (2) the energy utilization stage performance was better than that of the pollution treatment stage, but the gaps reduced year by year; and (3) energy efficiency increased during this period. Based on these results, some policy recommendations are given.

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Acknowledgments

The research is supported by National Natural Science Funds of China (Nos. 71222106, 71471178, 71110107024), Research Fund for the Doctoral Program of Higher Education of China (No. 20133402110028), Research Fund for Innovation Program of Central South University (2015CX010), and The Fundamental Research Funds for the Central Universities (No. WK2040160008).

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Authors and Affiliations

  1. School of Management, University of Science and Technology of China, Hefei, 230026, China

    Jie Wu & Beibei Xiong

  2. School of Business, Central South University, Changsha, 410083, China

    Qingxian An

  3. Dongwu Business School, Soochow University, Suzhou, 215021, China

    Jiasen Sun

  4. School of Economics, Hefei University of Technology, Hefei, 230009, China

    Huaqing Wu

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  1. Jie Wu
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  2. Beibei Xiong
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  3. Qingxian An
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  4. Jiasen Sun
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  5. Huaqing Wu
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Correspondence to Qingxian An.

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Wu, J., Xiong, B., An, Q. et al. Total-factor energy efficiency evaluation of Chinese industry by using two-stage DEA model with shared inputs. Ann Oper Res 255, 257–276 (2017). https://doi.org/10.1007/s10479-015-1938-x

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