The Paradox of Plenty: Efficiency and Sustainable Resource Allocation in Chinese Key Universities

Aligned with Sustainable Development Goal 4, the efficient and sustainable allocation of educational resources is essential for improving the quality of higher education. This study investigates the paradox between resource investment and the operational efficiency of Chinese key universities and explores pathways for sustainable resource allocation in higher education. Employing a two-stage Data Envelopment Analysis (DEA) and Bootstrap truncated regression, we evaluated the operational efficiency of 60 universities directly affiliated with the Ministry of Education of China from 2004 to 2023 and further analyzed factors influencing efficiency. The results show that greater resource concentration does not necessarily improve operational efficiency and may generate diminishing returns in resource use. Efficiency differences across university groups also vary with model specification and output composition, especially in research performance and doctoral education. Further analysis shows that faculty structure optimization, high-quality postgraduate education, and stable teaching teams are pivotal factors in enhancing universities’ sustainable operational efficiency. These findings highlight the importance of governance reform and performance-oriented resource allocation in supporting the sustainable development of higher education systems and the achievement of the Sustainable Development Goals.