Abstract
China’s rapid economic growth is accompanied by increasing energy consumption and severe environmental problems. As sustainable development can only be achieved by reducing energy intensity, new energy and renewable energy investment, as well as improving traditional energy efficiency, is becoming increasingly important. However, past energy efficiency assessments using data envelopment analysis (DEA) models mostly focused on radial and non-radial DEA model analyses. However, traditional radial DEA models ignore non-radial slacks when evaluating efficiency values, and non-radial DEA models ignore the same proportionality as radial DEA when evaluating efficiency value slacks. To balance the radial and non-radial model characteristics and consider undesirable output, this study combines a modified Epsilou-based measure (EBM) DEA and undesirable output and proposes a modified undesirable EBM DEA model to analyze the efficiency of China’s new and traditional energy sources. The empirical results found that (1) most new energy investment in most municipalities/provinces rapidly grew from 2013 to 2016; (2) as the annual efficiency score was only 1 in Beijing, Inner Mongolia, Shanghai, and Tianjin, the other 26 municipalities/provinces need significant improvements; (3) traditional energy efficiency scores were higher than new energy efficiency; and (4) NO2 efficiencies are slightly better than CO2 and SO2 efficiencies.
Highlights
Energy drove the rapid economic growth in China, most of which was supplied from low-efficiency fossil energy sources
26 municipalities/provinces need significant improvements; (3) traditional energy efficiency scores were higher than new energy efficiency; and (4) NO2 efficiencies are slightly better than CO2 and Keywords: EBM (Epsilou-based measure); undesirable output efficiency; new energy; traditional energy; 1
NO2, which is from a group of highly reactive gases known as nitrogen oxides (NX ), is an intermediate gas resulting from the industrial synthesis of nitric acid, millions of tons of which are produced each year
Summary
Energy drove the rapid economic growth in China, most of which was supplied from low-efficiency fossil energy sources. Reducing energy use and improving energy efficiency by actively developing green and environmentally friendly new energy sources can guarantee a better life for future generations. Because traditional radial DEA models ignore non-radial slacks and non-radial DEA models ignore the same proportionality as the radial DEA, they are not suitable for gaining a true picture of energy efficiency To solve this problem, Tone and Tsutsui [29] suggested an Epsilou-based measure (EBM). Variable range that was not limited and added an undesirable variable factor, which they called the modified undesirable SBM model This model was used in this paper to assess the energy efficiency of four Chinese municipalities and 26 provinces from 2013–2016 to avoid underestimating or overestimating the efficiency values and needed improvements. The remainder of this paper is organized as the follows: Section 2 gives a comprehensive literature review, Section 3 describes the research method, Section 4 gives the comprehensive empirical results and discussion, and Section 5 gives the conclusions and policy proposals
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