A Study on the Effects of Energy and Environmental Efficiency at China’s Provincial Level

Abstract

China’s economic development status continues to grow, but its environmental degradation issue is also becoming a global concern. This study uses dynamic network data envelopment analysis (DN-DEA) to evaluate the energy using efficiency and environmental efficiency in China over the period 2014–2017. The result shows that the former is greater than the latter for all years. This study utilizes a policy-oriented matrix to find the relationship between energy efficiency and Malmquist productivity index (MPI), showing that Chongqing and 13 other provinces have relatively poor energy efficiency, and they therefore must formulate a more effective energy policy to improve undesirable gas emissions. Shanghai and 6 other provinces exhibit relatively good energy efficiency, but are not progressing in MPI, and hence they must develop a stable energy strategy to avoid different efficiencies of catch-up and frontier-shift across time periods. High energy-consuming industries must also choose a low-carbon energy strategy so that they can promote economic development, while taking into account environmental protection in China’s provincial level.