Abstract

An electricity substitution strategy that replaces fossil fuels such as coal and oil with electricity in end-use energy consumption, can effectively contribute to an energy transition and the early achievement of carbon peaking and carbon neutrality targets. As the benefits of electricity substitution are not synchronized across China’s regions, this paper uses a three-stage data envelopment analysis (DEA) model to measure the efficiency of electric energy substitution in 30 provinces of China in 2017. The results show that both environmental factors and random errors have significant effects on energy efficiency. After eliminating these influences, the efficiency of electrical energy substitution among regions presented the following pattern: “high in the east and low in the west”. According to the evaluation results, this paper proposes corresponding suggestions for the development of electrical energy substitution.

Highlights

  • Introduction in China Based on aThree-Stage data envelopment analysis (DEA)Energy is widely acknowledged to be the cornerstone of social development, which is why it is indispensable for the sustainable development of all aspects of society

  • The following structure is adopted in this paper: in Section 2, this paper presents the principles of the three-stage DEA; in Section 3, this study establish a system of indexes covering the inputs and outputs of electricity substitution efforts, with the following indexes: output indexes, input indexes and environmental variables; in Section 4, on the basis of the model above, this paper calculates the efficiency values of electrical energy substitution for each province and municipality, and analyzes the differences between the three regions

  • From the empirical results of the first stage, due to the existence of external environmental influences, it seems that the scale efficiency (SE) in China as a whole is greater than the pure technical efficiency (PTE), indicating that the scale factor plays a dominant role in electricity substitution efficiency in each province and municipality, while the technical factor is in a secondary position

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Summary

Introduction in China Based on a Three-Stage DEA

Energy is widely acknowledged to be the cornerstone of social development, which is why it is indispensable for the sustainable development of all aspects of society. Drawing on the above-mentioned research results and starting with the inputs and outputs of each region’s electricity substitution efforts, this paper adopts a three-stage DEA model to calculate the electricity substitution efficiency of 30 provinces and cities in China in 2017, and analyzes their regional differences, which can provide suggestions for provinces and municipalities in order to enhance the efficiency of electricity substitution, as well as to achieve sustainable energy development. The following structure is adopted in this paper: in Section 2, this paper presents the principles of the three-stage DEA; in Section 3, this study establish a system of indexes covering the inputs and outputs of electricity substitution efforts, with the following indexes: output indexes, input indexes and environmental variables; in Section 4, on the basis of the model above, this paper calculates the efficiency values of electrical energy substitution for each province and municipality, and analyzes the differences between the three regions.

Principle of the Three-Stage DEA Model
Selection of Input and Output Indicators
Data Sources
Results of Traditional Electricity Substitution Efficiency Analysis
Results of Similar SFA Regression Analysis
Results of Modified Electricity Substitution Efficiency Analysis
Ranking of Electricity Substitution Efficiency by Province
Regional Comparison of the Efficiency of Electrical Energy Substitution
Conclusions and Recommendations
Full Text
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