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Understanding Chinese energy-environmental efficiency: performance, decomposition, and strategy.
Yufeng Chen1,2, Kelong Liu3, Liangfu Ni3
1College of Business Administration, Capital University of Economics and Business, Beijing, 100070, China. chenyufeng@gmail.com.
China's energy-environmental efficiency was overestimated, dropping significantly after accounting for external factors. Low scale efficiency hinders progress, necessitating policy improvements for sustainable development.
Area of Science:
- Environmental Science
- Economics
- Energy Policy
Background:
- Coordinating economic development with environmental protection is crucial for high-quality development.
- Vague definitions and conflicting results regarding energy-environmental efficiency hinder effective policymaking in China.
Purpose of the Study:
- To accurately measure provincial energy-environmental efficiency in China from 1995 to 2018.
- To analyze the impact of regional strategies on energy-environmental efficiency.
- To provide insights for policymakers to improve energy-environmental efficiency.
Main Methods:
- Delimitation of energy-environmental efficiency.
- Application of the three-stage Slacks-Based Model Data Envelopment Analysis (SBM-DEA).
- Exploration of provincial data from 1995 to 2018.
Main Results:
- National average energy-environmental efficiency was overestimated, dropping from 0.573 to 0.361 after adjustments.
- East China exhibited superior performance, with widening regional disparities.
- Low scale efficiency was identified as a primary concern, despite high pure energy-environmental efficiency.
Conclusions:
- Improving scale efficiency is critical for enhancing overall energy-environmental efficiency.
- Regional strategies have a limited and short-term positive impact on overall and scale efficiency, but not pure efficiency.
- Timely formulation of regional strategies and focus on scale efficiency are recommended for sustainable improvement.
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