The household resource efficiency and its economic determinants in China: A DEA and dynamic panel model

Abstract

Identifying the level of household resource efficiency and its determinants is paramount, given its significant implications for resource governance and national-scale domestic resource planning. This study assesses household resource efficiency in China from 2016 to 2020, employing a super-SBM model alongside three waves of nationally representative longitudinal data. The investigation further delves into the intricate dynamics connecting household income, consumption propensity, and resource efficiency, utilizing maximum likelihood and structural equation modeling (ML-SEM) with dynamic panel data. Findings reveal an overall decrease in household resource efficiency levels, accompanied by diminished variation among surveyed households. Notably, a noteworthy non-monotonic relationship between household income and resource efficiency emerges, confirming a U-shaped pattern. Additionally, consumption propensity exhibits a negative influence, a trend that is further accentuated by increasing income, on household resource efficiency. These insights shed light on the complex interplay between household income, consumption, and resource efficiency, advocating for targeted policies to enhance resource management within households and on a national scale.