Abstract
In evaluating the environmental efficiency analysis of Chinese industry systems, data envelopment analysis (DEA) has been a popular method. However, the production system is often treated as a black box in conventional DEA models. This study considers the internal structure of the production system to evaluate the environmental efficiency, which is characterized as a two-stage system, i.e., production subsystem and pollutant treatment subsystem. And, in reality, some subsystems in two-stage production systems are not equally important, and this kind of two-stage systems usually has the feature that one subsystem dominates the other. Thus, we consider the leader and follower relationship in the environmental efficiency analysis. A new non-cooperative two-stage DEA model considering undesirable intermediates and undesirable outputs is proposed to calculate the environmental efficiency. The proposed method is then applied to 30 regional industry systems of China in the year 2010. Thus, each DMU’s environmental efficiencies for the overall system as well as both subsystems could be analyzed by the proposed approach. More accurate information could be provided for environmental management.
Highlights
As the policy of “opening and reforms” in 1978, China has achieved tremendous success in economic development
Have significantly negative relationships with the overall efficiency, Electricity intensity (EI) has significantly positive relationship with the overall efficiency, while COD-generation intensity (CGI), solid waste-generation intensity (SWGI), COD-discharge intensity (CDI), and solid waste-discharge intensity (SWDI) have no significant relationship with the overall efficiency. us, for the government, to improve the overall environmental performance, more efforts should be made to reduce the emission of SO2 in the production subsystem and SO2 in the pollutant treatment subsystem and make full use of the electricity in the production subsystem
EI, CDI, and SWDI have no significant relationship with the overall efficiency. us, for the government, to improve the overall environmental performance, more efforts should be made to reduce the emission of SO2 in the production subsystem and SO2 in the pollutant treatment subsystem
Summary
In evaluating the environmental efficiency analysis of Chinese industry systems, data envelopment analysis (DEA) has been a popular method. The production system is often treated as a black box in conventional DEA models. Is study considers the internal structure of the production system to evaluate the environmental efficiency, which is characterized as a twostage system, i.e., production subsystem and pollutant treatment subsystem. Us, we consider the leader and follower relationship in the environmental efficiency analysis. A new noncooperative two-stage DEA model considering undesirable intermediates and undesirable outputs is proposed to calculate the environmental efficiency. E proposed method is applied to 30 regional industry systems of China in the year 2010. Us, each DMU’s environmental efficiencies for the overall system as well as both subsystems could be analyzed by the proposed approach.
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