IDEAS home Printed from https://ideas.repec.org/p/biw/wpaper/98.html
   My bibliography  Save this paper

Air emissions perspective on energy efficiency: An empirical analysis of China's coastal areas

Author

Listed:
  • Quande Qin
  • Xin Li
  • Li Li
  • Wei Zhen
  • Yi-Ming Wei

    (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology)

Abstract

Improving energy efficiency has been recognized as the most effective way to reduce the greenhouse effect and achieve sustainable development. From the perspective of air emissions, this paper adopts data envelopment analysis approach to evaluate the energy efficiency in China's coastal areas over the period of 2000-2012. Carbon dioxide, sulfur dioxide and nitrogen oxide are treated as undesirable outputs of energy consumptions. The proposed global Epsilon-based measure is used to estimate the static energy efficiency with an annual cross-section of data. The weights of the three undesirable outputs are determined according to their treatment costs. A global Malmquist-Luenberger productivity index based on directional distance function is employed to dynamically evaluate the energy efficiency. The results indicate the following in China's coastal areas: 1) the level of economic development is positively related to energy efficiency scores; 2) energy efficiency scores decrease when considering undesirable outputs except Beijing and Hainan; 3) the Circum-Bohai Sea Economic Region greatly improved energy efficiency and has great potential of air emission; 4) the annual growth rate of Malmquist-Luenberger productivity index change is overestimated; 5) energy efficiency improvement is mainly driven by technological improvement, and scale efficiency and management level are the main obstacles.

Suggested Citation

  • Quande Qin & Xin Li & Li Li & Wei Zhen & Yi-Ming Wei, 2017. "Air emissions perspective on energy efficiency: An empirical analysis of China's coastal areas," CEEP-BIT Working Papers 98, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    • Handle: RePEc:biw:wpaper:98
    as

    Download full text from publisher

    File URL: http://ceep.bit.edu.cn/docs/2018-10/20181012074750048252.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Chen, Su-Mei & He, Ling-Yun, 2014. "Welfare loss of China's air pollution: How to make personal vehicle transportation policy," China Economic Review, Elsevier, vol. 31(C), pages 106-118.
    2. Chang, Tzu-Pu & Hu, Jin-Li, 2010. "Total-factor energy productivity growth, technical progress, and efficiency change: An empirical study of China," Applied Energy, Elsevier, vol. 87(10), pages 3262-3270, October.
    3. Wang, Ke & Lu, Bin & Wei, Yi-Ming, 2013. "China’s regional energy and environmental efficiency: A Range-Adjusted Measure based analysis," Applied Energy, Elsevier, vol. 112(C), pages 1403-1415.
    4. Song, Ma-Lin & Zhang, Lin-Ling & Liu, Wei & Fisher, Ron, 2013. "Bootstrap-DEA analysis of BRICS’ energy efficiency based on small sample data," Applied Energy, Elsevier, vol. 112(C), pages 1049-1055.
    5. 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.
    6. Song, Malin & An, Qingxian & Zhang, Wei & Wang, Zeya & Wu, Jie, 2012. "Environmental efficiency evaluation based on data envelopment analysis: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4465-4469.
    7. Wang, Chunhua, 2007. "Decomposing energy productivity change: A distance function approach," Energy, Elsevier, vol. 32(8), pages 1326-1333.
    8. Pastor, Jesus T. & Lovell, C.A. Knox, 2005. "A global Malmquist productivity index," Economics Letters, Elsevier, vol. 88(2), pages 266-271, August.
    9. Yingnan Liu & Ke Wang, 2015. "Energy efficiency of China's industry sector: An adjusted network DEA-based decomposition analysis," CEEP-BIT Working Papers 83, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    10. Wei, Chu & Löschel, Andreas & Liu, Bing, 2015. "Energy-saving and emission-abatement potential of Chinese coal-fired power enterprise: A non-parametric analysis," Energy Economics, Elsevier, vol. 49(C), pages 33-43.
    11. Atkinson, Scott E. & Tsionas, Mike G., 2016. "Directional distance functions: Optimal endogenous directions," Journal of Econometrics, Elsevier, vol. 190(2), pages 301-314.
    12. Wang, Zhao-Hua & Zeng, Hua-Lin & Wei, Yi-Ming & Zhang, Yi-Xiang, 2012. "Regional total factor energy efficiency: An empirical analysis of industrial sector in China," Applied Energy, Elsevier, vol. 97(C), pages 115-123.
    13. Zhang, Ning & Zhou, P. & Choi, Yongrok, 2013. "Energy efficiency, CO2 emission performance and technology gaps in fossil fuel electricity generation in Korea: A meta-frontier non-radial directional distance functionanalysis," Energy Policy, Elsevier, vol. 56(C), pages 653-662.
    14. Liu, Liwei & Chen, Chuxiang & Zhao, Yufei & Zhao, Erdong, 2015. "China׳s carbon-emissions trading: Overview, challenges and future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 254-266.
    15. Dong-hyun Oh, 2010. "A global Malmquist-Luenberger productivity index," Journal of Productivity Analysis, Springer, vol. 34(3), pages 183-197, December.
    16. He, Ling-Yun & Chen, Yu, 2013. "Thou shalt drive electric and hybrid vehicles: Scenario analysis on energy saving and emission mitigation for road transportation sector in China," Transport Policy, Elsevier, vol. 25(C), pages 30-40.
    17. Wang, Ke & Wang, Shanshan & Liu, Lei & Yue, Hui & Zhang, Ruiqin & Tang, Xiaoyan, 2016. "Environmental co-benefits of energy efficiency improvement in coal-fired power sector: A case study of Henan Province, China," Applied Energy, Elsevier, vol. 184(C), pages 810-819.
    18. Wang, Ke & Wei, Yi-Ming & Zhang, Xian, 2013. "Energy and emissions efficiency patterns of Chinese regions: A multi-directional efficiency analysis," Applied Energy, Elsevier, vol. 104(C), pages 105-116.
    19. Apergis, Nicholas & Aye, Goodness C. & Barros, Carlos Pestana & Gupta, Rangan & Wanke, Peter, 2015. "Energy efficiency of selected OECD countries: A slacks based model with undesirable outputs," Energy Economics, Elsevier, vol. 51(C), pages 45-53.
    20. Halkos, George E. & Tzeremes, Nickolaos G., 2013. "A conditional directional distance function approach for measuring regional environmental efficiency: Evidence from UK regions," European Journal of Operational Research, Elsevier, vol. 227(1), pages 182-189.
    21. Hu, Jin-Li & Wang, Shih-Chuan, 2006. "Total-factor energy efficiency of regions in China," Energy Policy, Elsevier, vol. 34(17), pages 3206-3217, November.
    22. Wang, Zhaohua & Feng, Chao, 2015. "Sources of production inefficiency and productivity growth in China: A global data envelopment analysis," Energy Economics, Elsevier, vol. 49(C), pages 380-389.
    23. Wang, Ke & Wei, Yi-Ming, 2014. "China’s regional industrial energy efficiency and carbon emissions abatement costs," Applied Energy, Elsevier, vol. 130(C), pages 617-631.
    24. Wang, Zhaohua & Feng, Chao & Zhang, Bin, 2014. "An empirical analysis of China's energy efficiency from both static and dynamic perspectives," Energy, Elsevier, vol. 74(C), pages 322-330.
    25. Tone, Kaoru & Tsutsui, Miki, 2010. "An epsilon-based measure of efficiency in DEA - A third pole of technical efficiency," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1554-1563, December.
    26. Wang, H. & Zhou, P. & Zhou, D.Q., 2013. "Scenario-based energy efficiency and productivity in China: A non-radial directional distance function analysis," Energy Economics, Elsevier, vol. 40(C), pages 795-803.
    27. Wang, Qunwei & Zhou, Peng & Zhou, Dequn, 2012. "Efficiency measurement with carbon dioxide emissions: The case of China," Applied Energy, Elsevier, vol. 90(1), pages 161-166.
    28. Wang, Qunwei & Zhao, Zengyao & Zhou, Peng & Zhou, Dequn, 2013. "Energy efficiency and production technology heterogeneity in China: A meta-frontier DEA approach," Economic Modelling, Elsevier, vol. 35(C), pages 283-289.
    29. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    30. Zhang, Ning & Kong, Fanbin & Choi, Yongrok, 2014. "Measuring sustainability performance for China: A sequential generalized directional distance function approach," Economic Modelling, Elsevier, vol. 41(C), pages 392-397.
    31. Seiford, Lawrence M. & Zhu, Joe, 2002. "Modeling undesirable factors in efficiency evaluation," European Journal of Operational Research, Elsevier, vol. 142(1), pages 16-20, October.
    32. Honma, Satoshi & Hu, Jin-Li, 2008. "Total-factor energy efficiency of regions in Japan," Energy Policy, Elsevier, vol. 36(2), pages 821-833, February.
    33. Liu, Yingnan & Wang, Ke, 2015. "Energy efficiency of China's industry sector: An adjusted network DEA (data envelopment analysis)-based decomposition analysis," Energy, Elsevier, vol. 93(P2), pages 1328-1337.
    34. Stijn Reinhard & C.A. Knox Lovell & Geert Thijssen, 1999. "Econometric Estimation of Technical and Environmental Efficiency: An Application to Dutch Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 44-60.
    35. Sumei Chen & Lingyun He, 2013. "Deregulation or Governmental Intervention? A Counterfactual Perspective on China's Electricity Market Reform," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 21(4), pages 101-120, July.
    36. HE, Ling-Yun & QIU, Lu-Yi, 2016. "Transport demand, harmful emissions, environment and health co-benefits in China," Energy Policy, Elsevier, vol. 97(C), pages 267-275.
    37. Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
    38. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    39. Wei, Yi-Ming & Liao, Hua & Fan, Ying, 2007. "An empirical analysis of energy efficiency in China's iron and steel sector," Energy, Elsevier, vol. 32(12), pages 2262-2270.
    40. Hasanbeigi, Ali & Price, Lynn & Lu, Hongyou & Lan, Wang, 2010. "Analysis of energy-efficiency opportunities for the cement industry in Shandong Province, China: A case study of 16 cement plants," Energy, Elsevier, vol. 35(8), pages 3461-3473.
    41. Necmi Avkiran & Kaoru Tone & Miki Tsutsui, 2008. "Bridging radial and non-radial measures of efficiency in DEA," Annals of Operations Research, Springer, vol. 164(1), pages 127-138, November.
    42. Fan, Meiting & Shao, Shuai & Yang, Lili, 2015. "Combining global Malmquist–Luenberger index and generalized method of moments to investigate industrial total factor CO2 emission performance: A case of Shanghai (China)," Energy Policy, Elsevier, vol. 79(C), pages 189-201.
    43. Xu, Jin-Hua & Fleiter, Tobias & Fan, Ying & Eichhammer, Wolfgang, 2014. "CO2 emissions reduction potential in China’s cement industry compared to IEA’s Cement Technology Roadmap up to 2050," Applied Energy, Elsevier, vol. 130(C), pages 592-602.
    44. Zhang, Ning & Zhou, Peng & Kung, Chih-Chun, 2015. "Total-factor carbon emission performance of the Chinese transportation industry: A bootstrapped non-radial Malmquist index analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 584-593.
    45. Scheel, Holger, 2001. "Undesirable outputs in efficiency valuations," European Journal of Operational Research, Elsevier, vol. 132(2), pages 400-410, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    2. Wang, Zhaohua & Feng, Chao, 2015. "A performance evaluation of the energy, environmental, and economic efficiency and productivity in China: An application of global data envelopment analysis," Applied Energy, Elsevier, vol. 147(C), pages 617-626.
    3. Meng, Fanyi & Su, Bin & Thomson, Elspeth & Zhou, Dequn & Zhou, P., 2016. "Measuring China’s regional energy and carbon emission efficiency with DEA models: A survey," Applied Energy, Elsevier, vol. 183(C), pages 1-21.
    4. Mardani, Abbas & Zavadskas, Edmundas Kazimieras & Streimikiene, Dalia & Jusoh, Ahmad & Khoshnoudi, Masoumeh, 2017. "A comprehensive review of data envelopment analysis (DEA) approach in energy efficiency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1298-1322.
    5. 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.
    6. Wang, Zhaohua & Feng, Chao, 2015. "Sources of production inefficiency and productivity growth in China: A global data envelopment analysis," Energy Economics, Elsevier, vol. 49(C), pages 380-389.
    7. Feng, Chao & Zhang, Hua & Huang, Jian-Bai, 2017. "The approach to realizing the potential of emissions reduction in China: An implication from data envelopment analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 859-872.
    8. 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, vol. 12(4), pages 1-17, February.
    9. Lin, Boqiang & Du, Kerui, 2015. "Energy and CO2 emissions performance in China's regional economies: Do market-oriented reforms matter?," Energy Policy, Elsevier, vol. 78(C), pages 113-124.
    10. Yu, Dejian & He, Xiaorong, 2020. "A bibliometric study for DEA applied to energy efficiency: Trends and future challenges," Applied Energy, Elsevier, vol. 268(C).
    11. Du, Huibin & Matisoff, Daniel C. & Wang, Yangyang & Liu, Xi, 2016. "Understanding drivers of energy efficiency changes in China," Applied Energy, Elsevier, vol. 184(C), pages 1196-1206.
    12. Xiangyu Teng & Danting Lu & Yung-ho Chiu, 2019. "Emission Reduction and Energy Performance Improvement with Different Regional Treatment Intensity in China," Energies, MDPI, vol. 12(2), pages 1-18, January.
    13. Zhou, D.Q. & Wu, F. & Zhou, X. & Zhou, P., 2016. "Output-specific energy efficiency assessment: A data envelopment analysis approach," Applied Energy, Elsevier, vol. 177(C), pages 117-126.
    14. Wang, Zhaohua & Feng, Chao & Zhang, Bin, 2014. "An empirical analysis of China's energy efficiency from both static and dynamic perspectives," Energy, Elsevier, vol. 74(C), pages 322-330.
    15. Tao Xu & Jianxin You & Hui Li & Luning Shao, 2020. "Energy Efficiency Evaluation Based on Data Envelopment Analysis: A Literature Review," Energies, MDPI, vol. 13(14), pages 1-20, July.
    16. Zhou, D.Q. & Wang, Qunwei & Su, B. & Zhou, P. & Yao, L.X., 2016. "Industrial energy conservation and emission reduction performance in China: A city-level nonparametric analysis," Applied Energy, Elsevier, vol. 166(C), pages 201-209.
    17. Zhou, Haibo & Yang, Yi & Chen, Yao & Zhu, Joe, 2018. "Data envelopment analysis application in sustainability: The origins, development and future directions," European Journal of Operational Research, Elsevier, vol. 264(1), pages 1-16.
    18. Li, Jianglong & Lin, Boqiang, 2017. "Ecological total-factor energy efficiency of China's heavy and light industries: Which performs better?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 83-94.
    19. Yao, Xin & Guo, Chengwen & Shao, Shuai & Jiang, Zhujun, 2016. "Total-factor CO2 emission performance of China’s provincial industrial sector: A meta-frontier non-radial Malmquist index approach," Applied Energy, Elsevier, vol. 184(C), pages 1142-1153.
    20. Zhang, Ning & Zhou, Peng & Kung, Chih-Chun, 2015. "Total-factor carbon emission performance of the Chinese transportation industry: A bootstrapped non-radial Malmquist index analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 584-593.

    More about this item

    Keywords

    Energy efficiency; Data envelopment analysis; China's Coastal areas; Air emissions;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:biw:wpaper:98. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zhi-Fu Mi (email available below). General contact details of provider: https://edirc.repec.org/data/cebitcn.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.