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Environmental performance evaluation of Chinese industrial systems: a network SBM approach

Author

Listed:
  • Yongjun Li
  • Xiao Shi
  • Ali Emrouznejad
  • Liang Liang

Abstract

In recent years, environmental problems caused by industries in China have drawn increasing attention to both academics and policy makers. This paper assesses the environmental efficiency of Chinese regional industrial systems to come up with some recommendations to policy makers. First, we divided each Chinese regional industrial system into a production process and a pollutant treatment process. Then, we built a scientific input–intermediate–output index system by introducing a new network slacks-based model (NSBM) model. This study is the first to combine NSBM with DEA window analysis to give a dynamic evaluation of the environmental efficiency. This enables us to assess the environmental efficiency of Chinese regional industrial systems considering their internal structure as well as China’s policies concerning resource utilization and environmental protection. Hence, the overall efficiency of each regional industrial system is decomposed into production efficiency and pollutant treatment efficiency. Our empirical results suggest: (1) 66.7% of Chinese regional industrial systems are overall inefficient. 63.3 and of 66.7% Chinese regional industrial systems are inefficient in the production process and the pollutant treatment process, respectively. (2) The efficiency scores for the overall system and both processes are all larger in the eastern area of China than those of the central and western areas. (3) Correlation analysis indicates that SO2 generation intensity (SGI), solid waste generation intensity, COD discharge intensity, and SO2 discharge intensity have significantly negative impacts on the overall efficiency. (4) The overall inefficiency is mainly due to inefficiency of the pollutant treatment process for the majority of regional industrial systems. (5) In general, the overall efficiency was trending up from 2004 to 2010, indicating that the substantial efforts China has devoted to protecting the environment have yielded benefits.

Suggested Citation

  • Yongjun Li & Xiao Shi & Ali Emrouznejad & Liang Liang, 2018. "Environmental performance evaluation of Chinese industrial systems: a network SBM approach," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 69(6), pages 825-839, June.
    • Handle: RePEc:taf:tjorxx:v:69:y:2018:i:6:p:825-839
    DOI: 10.1057/s41274-017-0257-9
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    Citations

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    Cited by:

    1. Ouyang, Wendi & Yang, Jian-bo, 2020. "The network energy and environment efficiency analysis of 27 OECD countries: A multiplicative network DEA model," Energy, Elsevier, vol. 197(C).
    2. Linlin Zhao & Lin Zhang & Yong Zha, 2019. "Industrial Efficiency Evaluation in China: A Nonparametric Production-Frontier Approach," Sustainability, MDPI, vol. 11(18), pages 1-23, September.
    3. Ma Hewen & Geng Baoxia & Fu Yingxiong & Sun Yi & Sun Zhao, 2021. "Efficiency Analysis of Industrial Water Treatment in China Based on Two-stage Undesirable Fixed-sum Output DEA Model," Journal of Systems Science and Information, De Gruyter, vol. 9(6), pages 660-680, December.
    4. Syed Abdul Rehman Khan & Yu Zhang & Anil Kumar & Edmundas Zavadskas & Dalia Streimikiene, 2020. "Measuring the impact of renewable energy, public health expenditure, logistics, and environmental performance on sustainable economic growth," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 833-843, July.
    5. Zhang, Lin & Zhao, Linlin & Zha, Yong, 2021. "Efficiency evaluation of Chinese regional industrial systems using a dynamic two-stage DEA approach," Socio-Economic Planning Sciences, Elsevier, vol. 77(C).
    6. Zhang, Yue-Jun & Liang, Ting & Jin, Yan-Lin & Shen, Bo, 2020. "The impact of carbon trading on economic output and carbon emissions reduction in China’s industrial sectors," Applied Energy, Elsevier, vol. 260(C).
    7. Xiang Chen & Xuping Zhang & Xin Wu & Ching-Cheng Lu, 2022. "The environmental health and energy efficiency in China: A network slacks-based measure," Energy & Environment, , vol. 33(1), pages 170-188, February.
    8. Jie Wu & Dacheng Huang & Zhixiang Zhou & Qingyuan Zhu, 2020. "The regional green growth and sustainable development of China in the presence of sustainable resources recovered from pollutions," Annals of Operations Research, Springer, vol. 290(1), pages 27-45, July.
    9. Joohwan Kim & Hwayoung Kim, 2021. "Evaluation of the Efficiency of Maritime Transport Using a Network Slacks-Based Measure (SBM) Approach: A Case Study on the Korean Coastal Ferry Market," Sustainability, MDPI, vol. 13(11), pages 1-17, May.
    10. Khoshroo, Alireza & Izadikhah, Mohammad & Emrouznejad, Ali, 2022. "Total factor energy productivity considering undesirable pollutant outputs: A new double frontier based malmquist productivity index," Energy, Elsevier, vol. 258(C).
    11. Lei Li & Ruizeng Zhao & Feihua Huang, 2023. "Environmental Performance of China’s Industrial System Considering Technological Heterogeneity and Interaction," Sustainability, MDPI, vol. 15(4), pages 1-17, February.
    12. Magazzino, Cosimo & Alola, Andrew Adewale & Schneider, Nicolas, 2021. "The trilemma of innovation, logistics performance, and environmental quality in 25 topmost logistics countries: a quantile regression evidence," LSE Research Online Documents on Economics 117654, London School of Economics and Political Science, LSE Library.
    13. Kai He & Nan Zhu & Wu Jiang & Chuanjin Zhu, 2022. "Efficiency Evaluation of Chinese Provincial Industrial System Based on Network DEA Method," Sustainability, MDPI, vol. 14(9), pages 1-24, April.

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