Measuring Eco-Efficiency of State-Owned Forestry Enterprises in Northeast China

Abstract

State-owned forestry enterprises (SOFEs) play an important role in the forestry economy in China. Understanding the eco-efficiency of their production is beneficial for the development of sustainable forestry and for achieving Goal 8 of the United Nations’ Sustainable Development Goals (SDGs): Decent Work and Economic Growth. This paper assesses SOFEs’ overall eco-efficiency by analyzing various undesirable outputs using the Slacks-Based Measure of efficiency in Data Envelopment Analysis (SBM-DEA) model. Using basic data from 87 SOFEs in Northeast China from 2003 to 2016, this paper evaluated the eco-efficiency development level and spatial patterns of that region. The results show that SOFEs’ low eco-efficiency was caused by low pure-technical efficiency. Regional differences in eco-efficiency were very significant and became larger, but a market-oriented reform might help to improve such efficiency. The eco-efficiency of SOFEs was in decline from 2003 to 2016 due to the implementation of the Natural Forest Protection Project (NFPP). However, due to a relative lack of production factor inputs, most SOFEs’ scale returns are now increasing. In the future, efforts should be made to promote market-oriented reforms and take the path of large-scale development.