Efficiency of industrial energy conservation and carbon emission reduction in Liaoning Pro-vince based on data envelopment analysis (DEA)method.

Abstract

Taking 39 industries as independent decision-making units in Liaoning Province from 2003 to 2012 and considering the benefits of energy, economy and environment, we combined direction distance function and radial DEA method to estimate and decompose the energy conservation and carbon emissions reduction efficiency of the industries. Carbon emission of each industry was calculated and defined as an undesirable output into the model of energy saving and carbon emission reduction efficiency. The results showed that energy saving and carbon emission reduction efficiency of industries had obvious heterogeneity in Liaoning Province. The whole energy conservation and carbon emissions reduction efficiency in each industry of Liaoning Province was not high, but it presented a rising trend. Improvements of pure technical efficiency and scale efficiency were the main measures to enhance energy saving and carbon emission reduction efficiency, especially scale efficiency improvement. In order to improve the energy saving and carbon emission reduction efficiency of each industry in Liaoning Province, we put forward that Liaoning Province should adjust industry structure, encourage the development of low carbon high benefit industries, improve scientific and technological level and adjust the industry scale reasonably, meanwhile, optimize energy structure, and develop renewable and clean energy.