Total-factor carbon emission efficiency of China's provincial industrial sector and its dynamic evolution

Abstract

An improvement in industrial carbon emission efficiency is crucial for achieving both reductions in carbon emissions and sustainable economic growth. In this paper, we use an improved non-radial directional distance function (NDDF) to construct a new meta-frontier total-factor carbon emission efficiency index (TCEI) with which we estimate the meta-frontier TCEI of China's 30 provincial industrial sectors in 2005–2015 and analyze their dynamic evolution. The results show that compared to traditional NDDF, the improved NDDF has more advantages in measuring both carbon emission efficiency and the technology gap ratio. For the study period, China's industrial meta-frontier TCEI is low, indicating that the industrial TCEI of many provinces still has much room for improvement. The meta-frontier TCEI has significant inter-group heterogeneity, with Eastern China having the largest carbon emission efficiency, followed by Central China, and Western China having the lowest. China's industrial meta-frontier TCEI increased significantly during the study period with technical progress playing a major role in promoting it. Over time, however, the meta-frontier TCEI growth rate decreased significantly as the deterioration in technological efficiency and the expansion of the technology gap have jointly inhibited the growth of carbon emissions efficiency. Carbon emission performance in various regions over different periods exhibit differing characteristics, that is, the carbon emission performance has significant spatial heterogeneity and period heterogeneity.