Factor Analysis on the Industrial Environmental Efficiency and Energy Utilization Efficiency of China by DEA Method

Faced with two big stresses of energy shortage and environmental pollutants, China should improve its energy utilization efficiency. Based on the data of China Statistical Yearbook and China Environmental Statistics Yearbook, the pollutants discharge and energy utilization efficiency, including technical efficiency (TE), pure technical efficiency (PTE), scale efficiency (SE) and returns to scale (RTS) of China’s industry and its sub-sectors were analyzed by constant returns to scale model (CRS) and variable returns to scale model (VRS) of non-parametric data envelopment analysis (DEA) method. Results showed that: (1) The RTS of China's total industrial environmental efficiency and energy utilization efficiency were all in "irs" state, indicating that it was beneficial to expand the entire industrial scale. (2) The TE of total industrial energy utilization efficiency was about 0.80, the minimum TE was 0.018 of production and distribution of gas sector. (3) The total industrial environmental efficiency was about 0.77, the two sectors with high pollutants discharges were mining of other ores and manufacture of paper and paper products, and TE were 0.065 and 0.067, respectively. Mostly industrial sub-sectors should improve their technologies and adjust its scales except for extraction of petroleum and natural gas, manufacture of tobacco, printing, reproduction of recording media and so on. (4) Mining of other ores, manufacture of tobacco, manufacture of communication equipment, computers and other electronic equipment, manufacture of measuring, instruments and machinery for cultural activity and office work and production and distribution of water were in high energy utilization efficiency while in low environmental efficiency and steady RTS. So these sectors should improve the technologies to achieve DEA effective. (5) Scale expanding, technology advancement, energy use pattern improvement and industry structure adjustment were suggested for energy-saving industry according to the TE, PTE, SE and RTS.