Total-factor energy efficiency of regions in China

• Published in: Energy policy Vol. 34; no. 17; pp. 3206 - 3217
• Main Authors: Hu, Jin-Li, Wang, Shih-Chuan
• Format: Journal Article
• Language: English
• Published: Oxford Elsevier Ltd 01.11.2006; Elsevier; Elsevier Science Ltd
• Series: Energy Policy
• Subjects: Applied sciences; China; China (People's Republic) - Economic conditions; China (People's Republic) - Energy sector; China economy; Data envelopment analysis; Decision making units; Economic data; Energy; Energy consumption; Energy consumption - China (People's Republic); Energy economics; Energy efficiency; Energy policy; Exact sciences and technology; GDP; General, economic and professional studies; Gross Domestic Product; Methodology. Modelling; Studies; Total-factor energy efficiency (TFEE); Asia; China; China, People's Rep; Total-factor energy efficiency (TFEE); Data envelopment analysis; China economy; Productivity; Energy consumption; Measurement indicator; Methodology; Energy conservation; Energetic efficiency; Spatial variation
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2005.06.015

This paper analyzes energy efficiencies of 29 administrative regions in China for the period 1995–2002 with a newly introduced index. Most existing studies of regional productivity and efficiency neglect energy inputs. We use the data envelopment analysis (DEA) to find the target energy input of each region in China at each particular year. The index of total-factor energy efficiency (TFEE) then divides the target energy input by the actual energy input. In our DEA model, labor, capital stock, energy consumption, and total sown area of farm crops used as a proxy of biomass energy are the four inputs and real GDP is the single output. The conventional energy productivity ratio regarded as a partial-factor energy efficiency index is computed for comparison in contrast to TFEE; our index is found fitting better to the real case. According to the TFEE index rankings, the central area of China has the worst energy efficiency and its total adjustmentof energy consumption amount is over half of China's total. Regional TFEE in China generally improved during the research period except for the western area. A U-shape relation between the area's TFEE and per capita income in the areas of China is found, confirming the scenario that energy efficiency eventually improves with economic growth.