Metafroniter energy efficiency with CO2 emissions and its convergence analysis for China

Abstract

This paper measures the energy efficiency performance with carbon dioxide (CO2) emissions in 30 provinces in China during the period of 1997–2011 using a meta-frontier framework with the improved directional distance function (DDF). We construct a new environmental production possibility set by combining the super-efficiency and sequential data envelopment analysis (DEA) models to avoid “discriminating power problem” and “technical regress” when evaluating efficiency by DDF. Then, it is used in a meta-frontier framework to reflect the technology heterogeneities across east, central and west China. The results indicate that eastern China achieved the highest progress inefficiency relative to the metafrontier, followed by western and the central China. By focusing on technology gaps, we offer some suggestions for the different groups based on group-frontier and meta-frontier analyses. The inefficiency can be attributed to managerial failure for eastern and western China, and technological differences for central China. The convergence analysis shows that energy and CO2 emission governance will produce negative effects on economic growth, and it is suitable and acceptable to introduce rigorous environmental measures in eastern China.