Technical efficiency measurement of urban industrial water: a case study of cities in China

Abstract

PurposeWith the rapid economic growth and urbanization development, regional environmental problems have attracted increasing attention. The study on analyzing cities’ capacity on resource utilization and environmental protection is practically significant because of the industrial agglomeration in an urban area. This study aims to measure environmental efficiency of urban industrial water utilization by comparing input, output and undesirable outputs variables of cities.Design/methodology/approachThis paper combines data envelopment analysis basic approach with regression to discover the environmental efficiency score of cities and their influence factors. A set of slack-based measure (SBM) model is constructed for calculating the environmental efficiency score by considering both desirable and unendurable outputs.FindingsThis paper analyzes the industrial water utilization efficiency for China from the city level by evaluating the performance for up to 200 mainland Chinese cities during 2012–2016 under SBM model. Then, 2C Tobit regression is used to measure the determining factors of industrial water utilization efficiency from the angle of natural, social, municipal and industrial structure factors. The empirical study results show huge room for improvement in industrial water utilization in China, while the average citizen efficiency scores maintain a level of about 0.5.Originality/valueSignificant differences exist in the regional efficiency in different cities in China. Per capita GDP, a total length of drainage pipe and whether the area is coastal or not have significant positive impacts on the water utilization efficiency, while the proportion of secondary industry to GDP has a significant negative influence. Specific recommendations are proposed based on the local industrial water utilization efficiency scores, such as improving urban infrastructure and adopting a more flexible water pricing system.