Energy and emissions efficiency patterns of Chinese regions: A multi-directional efficiency analysis

Evaluation of the energy and emissions efficiency of Chinese regions has recently attracted increasing interest. A number of previous studies have contributed to the measurement of energy efficiency using various types of data envelopment analysis (DEA) techniques. However, most of these DEA-based energy efficiency analyses were restricted to the radial expansions of outputs or radial contractions of inputs. In this paper, we utilize the multi-directional efficiency analysis (MEA) approach instead of the traditional radial DEA to investigate Chinese regional energy and emissions efficiency. Since MEA selects benchmarks such that the input contractions or output expansions are proportional to the potential improvement identified by considering the improvement potential in each input or output variable separately, not just the efficiency status but also the efficiency patterns of different Chinese regions and areas can be detected. The empirical study results indicate that, in general, the MEA efficiency of China experienced an increasing process over the study period 1997-2010; the east area overall is more MEA efficient than the central area and the west area of China during the study period; the significant higher MEA efficiency of the east area to the central area and the west area are due to both the higher energy specific efficiency and the higher emissions specific efficiency of the east area compared to the other two areas; the provinces of Hebei, Shanxi, Inner Mongolia, Shandong, Henan, and Hubei etc. have both high energy saving potentials and high emissions reduction potentials, thus they will play the most important roles in China's effort on energy conservation and CO₂ emissions mitigation.