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China s Provincial Energy Efficiency Measurement based on DEA and Directional Distance Function |
WANG Ke-Liang, YANG Bao-Chen, YANG Li |
1. Tianjin University, Tianjin, China; 2.Anhui University of Science and Technology, Huainan, Anhui, China |
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Abstract Based on totalfactor energy efficiency framework, this paper builds two kinds of new energy efficiency measurement models by utilizing data envelopment analysis (DEA) method and the directional distance function, compares and analyzes the totalfactor energy efficiency and the potential of energy conservation of each province, the whole country and three major areas during the years from 2004 to 2008. Meanwhile, on the basis of new models, we combine singlefactor energy efficiency and totalfactor energy efficiency by introducing the new index of ‘goal energy intensity’ and measure energy intensity efficiency of each province of China from 2004 to 2008. The results of the empirical application reveal that China’s totalfactor energy efficiency is very low and there are relatively significant differences in energy utilization efficiency of all provinces and three major regions. Hence, energy conservation situation is very serious and there exists large potentials of energy conservation and output growth. As a result, to improve scientific and technical strength and change economic growth mode from extensive mode to intensive mode is the longterm strategic emphasis of Chinese government.
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Received: 08 April 2010
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