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The Total-Factor Energy Efficiency of Regions in China: Based on Three-Stage SBM Model

Author

Listed:
  • Haifeng Huang

    (HSBC Business School, Peking University, Shenzhen 518055, China)

  • Tao Wang

    (Big Commodity Business School, Ningbo University of Finance and Economics, Ningbo 310300, China)

Abstract

This paper constructs a three-stage Slacks-Based Measure (SBM) model to evaluate and analyze the total-factor energy efficiency (TFEE) of 276 cities in China during the period of 2000–2012 from the management and environment dual perspectives according to the principles of multi-stage Data Envelopment Analysis (DEA) model. In the first stage, a SBM-DEA model is applied to assess TFEE scores to illustrate the effects of the energy factors, while considering the undesirable output. In the second stage, we adjust the original data, and then in the third stage, we use SBM model again to get efficiency evaluation and obtain pure management efficiency of every decision unit. The results show that Chinese TFEE is still low and energy saving potential can be up to 34–46%, showing an inverted “U” shape tendency and characteristic of regional imbalance. Based on these findings, we further put forward some paths and strategies to improve Chinese energy efficiency.

Suggested Citation

  • Haifeng Huang & Tao Wang, 2017. "The Total-Factor Energy Efficiency of Regions in China: Based on Three-Stage SBM Model," Sustainability, MDPI, vol. 9(9), pages 1-20, September.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:9:p:1664-:d:112492
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