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Resource and environment efficiency analysis of provinces in China: A DEA approach based on Shannon's entropy

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  • Bian, Yiwen
  • Yang, Feng
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    Abstract

    Data envelopment analysis (DEA) has been widely used in energy efficiency and environment efficiency analysis in recent years. Based on the existing environment DEA technology, this paper presents several DEA models for estimating the aggregated efficiency of resource and environment. These models can evaluate DMUs' energy efficiencies and environment efficiencies simultaneously. However, efficiency ranking results obtained from these models are not the same, and each model can provide some valuable information of DMUs' efficiencies, which we could not ignore. Under this situation, it may be hard for us to choose a specific model in practice. To address this kind of performance evaluation problem, the current paper extends Shannon-DEA procedure to establish a comprehensive efficiency measure for appraising DMUs' resource and environment efficiencies. In the proposed approach, the measure for evaluating a model's importance degree is provided, and the targets setting approach of inputs/outputs for DMU managers to improve DMUs' energy and environmental efficiencies is also discussed. We illustrate the proposed approach using real data set of 30 provinces in China.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 38 (2010)
    Issue (Month): 4 (April)
    Pages: 1909-1917

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    Handle: RePEc:eee:enepol:v:38:y:2010:i:4:p:1909-1917

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    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: Data envelopment analysis (DEA) Resource and environment efficiency Shannon's entropy;

    References

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    Citations

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    Cited by:
    1. Yang, Mian & Yang, Fu-Xia & Chen, Xing-Peng, 2011. "Effects of substituting energy with capital on China's aggregated energy and environmental efficiency," Energy Policy, Elsevier, vol. 39(10), pages 6065-6072, October.
    2. Wang, Ke & Lu, Bin & Wei, Yi-Ming, 2013. "China’s regional energy and environmental efficiency: A Range-Adjusted Measure based analysis," Applied Energy, Elsevier, vol. 112(C), pages 1403-1415.
    3. Wu, Jie & An, Qingxian & Xiong, Beibei & Chen, Ya, 2013. "Congestion measurement for regional industries in China: A data envelopment analysis approach with undesirable outputs," Energy Policy, Elsevier, vol. 57(C), pages 7-13.
    4. Halkos, George E. & Tzeremes, Nickolaos G., 2013. "A conditional directional distance function approach for measuring regional environmental efficiency: Evidence from UK regions," European Journal of Operational Research, Elsevier, vol. 227(1), pages 182-189.
    5. Lim, Seong-Rin & Schoenung, Julie M., 2011. "Measurement and analysis of product energy efficiency to assist energy star criteria development: An example for desktop computers," Energy Policy, Elsevier, vol. 39(12), pages 8003-8010.
    6. Chang, Young-Tae & Zhang, Ning & Danao, Denise & Zhang, Nan, 2013. "Environmental efficiency analysis of transportation system in China: A non-radial DEA approach," Energy Policy, Elsevier, vol. 58(C), pages 277-283.
    7. Bi, Gong-Bing & Song, Wen & Zhou, P. & Liang, Liang, 2014. "Does environmental regulation affect energy efficiency in China's thermal power generation? Empirical evidence from a slacks-based DEA model," Energy Policy, Elsevier, vol. 66(C), pages 537-546.
    8. Fang, Chin-Yi & Hu, Jin-Li & Lou, Tze-Kai, 2013. "Environment-adjusted total-factor energy efficiency of Taiwan's service sectors," Energy Policy, Elsevier, vol. 63(C), pages 1160-1168.
    9. Bian, Yiwen & He, Ping & Xu, Hao, 2013. "Estimation of potential energy saving and carbon dioxide emission reduction in China based on an extended non-radial DEA approach," Energy Policy, Elsevier, vol. 63(C), pages 962-971.

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