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China's regional energy efficiency: Results based on three-stage DEA model

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  • Bin Lu
  • Ke Wang
  • Zhiqiang Xu

Abstract

Traditional DEA models ignore the influence of environmental variables and statistical noise which may result in biased efficiency estimates. To solve this problem, three-stage DEA model was proposed and has been widely applied in many areas. This study evaluates China's regional energy efficiency by using three-stage DEA model based on the statistical data of 2010, and discusses the divergence of three different efficiency assessment methods. The empirical results show that the environmental factors indeed influence the regional energy efficiency performance. After the adjustment of environmental variables, the national average technical efficiency by adopting three-stage DEA model decreased significantly than by using traditional DEA model, but the influences to regions are different due to diverse features, some regions were overestimated by using BCC-DEA model, and some regions were underestimated. Three-stage DEA model is able to reflect the true efficiency by eliminating environmental effects compared with other methods.

Suggested Citation

  • Bin Lu & Ke Wang & Zhiqiang Xu, 2016. "China's regional energy efficiency: Results based on three-stage DEA model," CEEP-BIT Working Papers 89, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    • Handle: RePEc:biw:wpaper:89
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    File URL: http://www.ceep.net.cn/docs/2016-02/20160209182119170856.pdf
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    References listed on IDEAS

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    Cited by:

    1. Mihail Nikolaevich Dudin & Nikolaj Vasilevich Lyasnikov & Vladimir Dmitriyevich Sekerin & Anna Evgenevna Gorohova & Vyacheslav Viktorovich Burlakov, 2016. "Provision of Energy Security at the National Level in the Context of the Global Gas Transportation Industry Development," International Journal of Energy Economics and Policy, Econjournals, vol. 6(2), pages 234-242.
    2. Haifeng Huang & Tao Wang, 2017. "The Total-Factor Energy Efficiency of Regions in China: Based on Three-Stage SBM Model," Sustainability, MDPI, vol. 9(9), pages 1-20, September.

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    More about this item

    Keywords

    Evaluation; Three-stage DEA Model; SFA; Environmental Influence; Regional Energy Efficiency;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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