Abstract
An industrial system has positive and negative strategies to adapt to environmental regulations, which can be defined as natural disposability and managerial disposability. Meanwhile, the operational process of an industrial system can be divided into regular production activities and pollutant control activities. Within this, industrial system’s technical efficiency (TE) can be decomposed into economic efficiency (ECE) and environmental efficiency (ENE). On the basis of natural disposability and managerial disposability, this paper proposes static and dynamic data envelopment analysis (DEA) models to evaluate the efficiencies of industrial systems. Based on the proposed approach, TE, ECE, ENE, and Malmqusit productivity index (MPI) values were obtained simultaneously. The MPI values were further separated into the effects of static efficiency change and technical change. The proposed method was applied to assess the technical efficiencies of Chinese regional industrial systems between 2011 and 2015. Key findings are that (1) the low ENE is the main source of technical inefficiency; (2) the average static TE and ENE under natural disposability are both lower than those under managerial disposability; (3) the static efficiency change and technical change of TE are similar to those of ENE; and (4) the technical change has a significant impact on the changes in TE.
Highlights
Industry determines the speed, scale, and level of national economic modernization and plays a leading role in the national economy of the contemporary world
To reasonably estimate the technical efficiencies of industrial systems, we in this study propose static and dynamic data envelopment analysis (DEA) models based on different adaptive strategies by simultaneously considering the efficiency decomposition and dynamic efficiency changes
According to the ideas of global Malmqusit productivity index (MPI) introduced by Pastor and Lovell [35], we propose the dynamic models for measuring the changes in technical efficiency (TE), ECE, and environmental efficiency (ENE) over time
Summary
Scale, and level of national economic modernization and plays a leading role in the national economy of the contemporary world. The above-mentioned studies analyzed the industrial systems’ efficiencies by only considering internal structures (i.e., two-stage or network process) or dynamic efficiency without decomposing the TE into specific components and exploring the effects of adaptive strategies on efficiency evaluation. To reasonably estimate the technical efficiencies of industrial systems, we in this study propose static and dynamic DEA models based on different adaptive strategies by simultaneously considering the efficiency decomposition and dynamic efficiency changes. This is the earliest study to simultaneously consider dynamic effects of adaptive strategies for environmental regulations and decomposition of technical efficiency To this end, we developed dynamic models based on different adaptive strategies to evaluate the technical efficiencies of industrial systems.
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