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Bootstrapped DEA and Clustering Analysis of Eco-Efficiency in China’s Hotel Industry

Author

Listed:
  • Yang Li

    (Department of International Business, National Taiwan University, Taipei 10617, Taiwan)

  • An-Chi Liu

    (College of Business Administration, Fujian Business University, Fuzhou 350016, China)

  • Yi-Ying Yu

    (Department of International Business Administration, Chinese Culture University, Taipei 11114, Taiwan)

  • Yueru Zhang

    (New Huadu Business School, Minjiang University, Fuzhou 350108, China)

  • Yiting Zhan

    (New Huadu Business School, Minjiang University, Fuzhou 350108, China)

  • Wen-Cheng Lin

    (School of Economics and Management, Guangdong University of Petrochemical Technology, Maoming 525000, China)

Abstract

As one of the world’s largest and fastest growing industries, tourism is facing the challenge of balancing growth and eco-environmental protection. Taking tourism CO 2 emissions as undesirable outputs, this research employs the bootstrapping data envelopment analysis (DEA) approach to measure the eco-efficiency of China’s hotel industry. Using a dataset consisting of 31 provinces in the period 2016–2019, the bootstrapping-based test validates that the technology exhibits variable returns to scale. The partitioning around medoids (PAM) algorithm, based on the bootstrap samples of eco-efficiency, clusters China’s hotel industry into two groups: Cluster 1 with Shandong as the representative medoid consists of half of the superior coastal provinces and half of the competitive inland provinces, while Cluster 2 is less efficient with Jiangsu as the representative medoid. Therefore, it is suggested that the China government conduct a survey of only Shandong and Jiangsu to approximately capture the key characteristics of the domestic hotel industry’s eco-efficiency in order to formulate appropriate sustainable development policies. Lastly, biased upward eco-efficiencies may provide incorrect information and misguide managerial and/or policy implications.

Suggested Citation

  • Yang Li & An-Chi Liu & Yi-Ying Yu & Yueru Zhang & Yiting Zhan & Wen-Cheng Lin, 2022. "Bootstrapped DEA and Clustering Analysis of Eco-Efficiency in China’s Hotel Industry," Sustainability, MDPI, vol. 14(5), pages 1-16, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:5:p:2925-:d:762845
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