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Energy Efficiency and Energy Saving Potential in China: A Directional Meta-Frontier DEA Approach

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  • Qunwei Wang

    () (School of Business, Soochow University, No. 50 Donghuan Road, Suzhou 215021, China
    Research Centre for Soft Energy Science, Nanjing University of Aeronautics and Astronautics, No. 29 Jiangjun Avenue, Nanjing 210016, China)

  • Peng Zhou

    () (Research Centre for Soft Energy Science, Nanjing University of Aeronautics and Astronautics, No. 29 Jiangjun Avenue, Nanjing 210016, China)

  • Zengyao Zhao

    () (School of Business, Soochow University, No. 50 Donghuan Road, Suzhou 215021, China)

  • Neng Shen

    () (School of Business, Soochow University, No. 50 Donghuan Road, Suzhou 215021, China)

Abstract

Increasing energy efficiency and exploiting energy saving potential are two important practices that can help to ensure future energy security in China. This paper proposes a new total factor energy efficiency indicator, based on the directional meta-frontier data envelopment analysis (DEA) approach, to account for the heterogeneity of production technology among provinces in China. This indicator considers both energy savings and economic development, and can also decompose the energy saving potential. An empirical research study conducted on 29 Chinese provinces indicates that the differences in energy efficiency and production technology among the Chinese regions are quite significant. Most eastern coastal provinces maintain high-energy efficiency and advanced production technology, while energy efficiency in the west is typically lower. As a rule, improvements in technical and management factors are needed to exploit energy saving potentials. However, the emphasis on these two factors in each province should differ. China’s general energy efficiency is relatively low; the absolute amount of nationwide energy saving potential is on the rise.

Suggested Citation

  • Qunwei Wang & Peng Zhou & Zengyao Zhao & Neng Shen, 2014. "Energy Efficiency and Energy Saving Potential in China: A Directional Meta-Frontier DEA Approach," Sustainability, MDPI, Open Access Journal, vol. 6(8), pages 1-17, August.
  • Handle: RePEc:gam:jsusta:v:6:y:2014:i:8:p:5476-5492:d:39508
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    References listed on IDEAS

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    Cited by:

    1. Cayir Ervural, Beyzanur & Zaim, Selim & Delen, Dursun, 2018. "A two-stage analytical approach to assess sustainable energy efficiency," Energy, Elsevier, vol. 164(C), pages 822-836.
    2. Dong Hee Suh, 2015. "Declining Energy Intensity in the U.S. Agricultural Sector: Implications for Factor Substitution and Technological Change," Sustainability, MDPI, Open Access Journal, vol. 7(10), pages 1-14, September.
    3. Lei Wang & Ruyin Long & Hong Chen, 2017. "Study of Urban Energy Performance Assessment and Its Influencing Factors Based on Improved Stochastic Frontier Analysis: A Case Study of Provincial Capitals in China," Sustainability, MDPI, Open Access Journal, vol. 9(7), pages 1-18, June.
    4. Ru Ji & Shilin Qu, 2019. "Investigation and Evaluation of Energy Consumption Performance for Hospital Buildings in China," Sustainability, MDPI, Open Access Journal, vol. 11(6), pages 1-14, March.
    5. Hang, Ye & Sun, Jiasen & Wang, Qunwei & Zhao, Zengyao & Wang, Yizhong, 2015. "Measuring energy inefficiency with undesirable outputs and technology heterogeneity in Chinese cities," Economic Modelling, Elsevier, vol. 49(C), pages 46-52.
    6. Zeng, Shihong & Jiang, Chunxia & Ma, Chen & Su, Bin, 2018. "Investment efficiency of the new energy industry in China," Energy Economics, Elsevier, vol. 70(C), pages 536-544.
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    8. Chang, Kai & Chen, Rongda & Chevallier, Julien, 2018. "Market fragmentation, liquidity measures and improvement perspectives from China's emissions trading scheme pilots," Energy Economics, Elsevier, vol. 75(C), pages 249-260.
    9. Kounetas, Konstantinos & Stergiou, Eirini, 2019. "Technology heterogeneity in European industries' energy efficiency performance. The role of climate, greenhouse gases, path dependence and energy mix," MPRA Paper 92314, University Library of Munich, Germany.
    10. Shihong Zeng & Jiuying Chen, 2016. "Forecasting the Allocation Ratio of Carbon Emission Allowance Currency for 2020 and 2030 in China," Sustainability, MDPI, Open Access Journal, vol. 8(7), pages 1-28, July.
    11. repec:gam:jsusta:v:8:y:2016:i:4:p:324:d:67033 is not listed on IDEAS
    12. Emrouznejad, Ali & Yang, Guo-liang, 2016. "A framework for measuring global Malmquist–Luenberger productivity index with CO2 emissions on Chinese manufacturing industries," Energy, Elsevier, vol. 115(P1), pages 840-856.
    13. Ming Meng & Yanan Fu & Tianyu Wang & Kaiqiang Jing, 2017. "Analysis of Low-Carbon Economy Efficiency of Chinese Industrial Sectors Based on a RAM Model with Undesirable Outputs," Sustainability, MDPI, Open Access Journal, vol. 9(3), pages 1-18, March.
    14. Yang, Guo-liang & Fukuyama, Hirofumi, 2018. "Measuring the Chinese regional production potential using a generalized capacity utilization indicator," Omega, Elsevier, vol. 76(C), pages 112-127.
    15. Bingquan Liu & Yongqing Li & Rui Hou & Hui Wang, 2019. "Does Urbanization Improve Industrial Water Consumption Efficiency?," Sustainability, MDPI, Open Access Journal, vol. 11(6), pages 1-17, March.
    16. Wang, Nannan & Chen, Ji & Yao, Shengnan & Chang, Yen-Chiang, 2018. "A meta-frontier DEA approach to efficiency comparison of carbon reduction technologies on project level," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2606-2612.
    17. Shihong Zeng & Mimi Hu & Bin Su, 2016. "Research on Investment Efficiency and Policy Recommendations for the Culture Industry of China Based on a Three-Stage DEA," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-15, March.
    18. Lei Chen & Fei-Mei Wu & Feng Feng & Fujun Lai & Ying-Ming Wang, 2018. "A Common Set of Weights for Ranking Decision-Making Units with Undesirable Outputs: A Double Frontiers Data Envelopment Analysis Approach," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(06), pages 1-25, December.
    19. Zeng, Shihong & Nan, Xin & Liu, Chao & Chen, Jiuying, 2017. "The response of the Beijing carbon emissions allowance price (BJC) to macroeconomic and energy price indices," Energy Policy, Elsevier, vol. 106(C), pages 111-121.
    20. Emrouznejad, Ali & Yang, Guo-liang, 2016. "CO2 emissions reduction of Chinese light manufacturing industries: A novel RAM-based global Malmquist–Luenberger productivity index," Energy Policy, Elsevier, vol. 96(C), pages 397-410.
    21. Feng, Chao & Wang, Miao, 2018. "Analysis of energy efficiency in China's transportation sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 565-575.
    22. Fang-Rong Ren & Ze Tian & Yu-Ting Shen & Yung-Ho Chiu & Tai-Yu Lin, 2019. "Energy, CO 2 , and AQI Efficiency and Improvement of the Yangtze River Economic Belt," Energies, MDPI, Open Access Journal, vol. 12(4), pages 1-17, February.
    23. Zhang, Bin & Lu, Danting & He, Yan & Chiu, Yung-ho, 2018. "The efficiencies of resource-saving and environment: A case study based on Chinese cities," Energy, Elsevier, vol. 150(C), pages 493-507.

    More about this item

    Keywords

    energy efficiency; energy saving potential; production technology; meta-frontier;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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