Reassessment of industrial eco-efficiency in China under the sustainable development goals: A meta two-stage parallel entropy dynamic DDF-DEA model

Abstract

As the path of industrial eco-efficiency (IEE) needs to be re-examined from a multi-dimensional perspective, this research opens the internal “black box” of China's industrial eco-economic system driven by sustainable development goals (SDGs) and decomposes IEE into industrial production and sustainable development stages. It further divides the industrial production stage into two parallel subsystems of water use efficiency (WUE) and energy efficiency (EE) and derives SDG6 efficiency (SDG6E) and SDG7 efficiency (SDG7E) in the sustainable development stage respectively. The paper proposes a meta two-stage parallel entropy dynamic DDF-DEA model to re-measure IEE of 30 provinces in China from 2015 to 2021, discusses the relationship between overall efficiency and stage efficiency, and by using the Tobit model explores various types of influencing factors by subregion. The results show that the modified DDF-DEA model can explore China's IEE more accurately under SDGs. China's IEE is more stable from 2015 to 2021, with the efficiency value always fluctuating between 0.59 and 0.64, the overall level is low, and there is more room for improvement. There are significant inter-provincial differences in IEE and efficiency inertia. In more than 75% of the provinces SDG7E constrains IEE improvement, while the dynamic evolution of IEE and its subsystem efficiency varies across regions. Environmental regulation is a common factor affecting IEE across the country and in the east, central, and west regions, whereas the level of economic development, openness to the outside world, and urbanization rate are differential factors affecting IEE across the country and in the three major regions. This study offers new perspectives for exploring the path of IEE enhancement and providing empirical references for the collaborative construction of industrial ecological civilization.