Environmental efficiency and abatement cost of China's industrial sectors based on a three-stage data envelopment analysis

Xie, Bai-Chen; Duan, Na; Yishu, Wang

doi:10.1016/j.jclepro.2016.12.100

Cited by 67 publications

(31 citation statements)

References 43 publications

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“…Zhao Changhong et al [24] measured the total factor energy efficiency (TFEE) of 35 "Belt and Road" initiative countries in 2015 based on three-stage DEA model. Xie and Duan et al [25] conducted a three-stage DEA analysis of the environmental efficiency of 37 industry sectors in China. The analysis showed that uncontrollable variables had a striking impact on environment efficiency.…”

Section: Literature Reviewmentioning

confidence: 99%

Evaluating the Investment Efficiency of China’s Provincial Power Grid Enterprises under New Electricity Market Reform: Empirical Evidence Based on Three-Stage DEA Model

et al. 2019

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The new round of electricity market reform in 2015 completely changed the profit pattern of power grid enterprises (PGEs) in China, and directly affected their investment plans. Under the new electricity market reform (NEMR), the government regulatory authority made higher requirements for the investment efficiency of PGEs, and the investment effectiveness hence became the core criterion for investment plans. Therefore, the PGEs are now attaching great importance to the investment efficiency. According to their geographical differences, this paper divides the Chinese provincial PGEs into three groups, namely eastern, central and western region enterprises. Based on the NEMR, we developed an evaluation system of investment efficiency for the above-mentioned enterprises. Moreover, this paper selects GDP per capita, electricity consumption in industry, and electrification rate as external environment variables, and conducts an empirical research on the investment efficiency of 31 provincial PGEs in China in 2017. The analysis reveals that three external environment variables have considerable impacts on the investment efficiency. Though the increase of GDP per capita and electricity consumption in industry are not conducive to improving investment efficiency, the advancement of electrification plays a positive role in its improvement. And from the real efficiency results, Tianjin, Liaoning, Jiangsu, and Fujian have relatively higher investment efficiency, while Henan, Shandong, and Shanghai exhibit lower investment efficiency. By comparing the investment efficiency of PGEs in the first and third stage, conclusions can be drawn that in the first stage the investment efficiency of PGEs was overestimated, and the inefficient investments prevailed some provincial PGEs, which caused by low scale efficiency.

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Section: Literature Reviewmentioning

confidence: 99%

Evaluating the Investment Efficiency of China’s Provincial Power Grid Enterprises under New Electricity Market Reform: Empirical Evidence Based on Three-Stage DEA Model

et al. 2019

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“…In general, the generalised environmental production technology (1) is assumed to be convex, conical, and weakly disposable (Leleu, 2012;Wang and He, 2017a;Xie et al, 2017). Based on environmental production technology (1), the input-oriented Shephard distance function, S I = inf {α| (y, u) ∈ P(αx)}, serves to minimise inputs with fixed outputs under that environmental production technology, and was widely used to derive the MAC of pollutants.…”

Section: Derivation Of Pollutant Marginal Abatement Costsmentioning

confidence: 99%

Will regional economic integration influence carbon dioxide marginal abatement costs? Evidence from Chinese panel data

Wang

2018

Energy Economics

102

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With frequent trade and technology diffusion, the barriers between regions are gradually weakening, and regions have become more integrated over recent years. Regional economic integration not only stimulates labour mobility, but also achieve scale economy, both of which may also influence carbon dioxide (CO 2 ) marginal abatement costs through affecting energy consumption, CO 2 emissions, productivity growth, and technical progress. Nevertheless, to the best of our knowledge, none of the studies has currently concerned the influence of regional economic integration on CO 2 marginal abatement costs. To fill this research gap, this study first theoretically clarifies the influence mechanism of regional economic integration on CO 2 marginal abatement cost, and then empirically attempts to investigate their relationship in the context of China, with panel data models. To serve this purpose, the provincial CO 2 marginal abatement cost and regional economic integration are estimated by parametric directional distance function and price-based approach, respectively. The results show that China's regional economic integration level indeed gradually improved over 2002-2011 except in 2003-04 and 2006-09 due to the spread of Severe Acute Respiratory Syndrome (SARS) and the sub-prime loan crisis. Moreover, evolution of regional economic integration indeed contributes to the increase of CO 2 marginal abatement cost at 5% significance level. Using robust tests, it can be found that the results are also reliable and robust to sub-samples.

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“…Notably, it is found that the above studies mainly focus on the industrial sectors, while a comprehensive investigation on the participating sectors of CN-ETS has not been conducted. Furthermore, to the best of our knowledge, few studies take the industry heterogeneity into account, in addition to Xie et al [11] and Chung and Heshmati [12]. In this context, we attempt to perform an empirical study on the participating sectors of CN-ETS in terms of CEP, MP, and MAC, taking into consideration the industry heterogeneity.…”

Section: Introductionmentioning

confidence: 99%

“…On the other hand, a comprehensive acquaintance of MAC among the participating sectors could help the participating enterprises to determine the best mitigation strategies [10]. Moreover, to the best knowledge of the authors, there have been few studies on the CEP, MP, and MAC of the sectors covered in the CN-ETS, and this paper aims to fill this research gap.Additionally, it is accepted that there exists significant heterogeneity in terms of the production technology among various sectors [11], which is regarded as an obstacle to the objective evaluation of CEP, MP, and MAC [12]. Therefore, taking the technology heterogeneity into consideration, we employ a joint framework consisting of the directional distance function (DDF) and meta-frontier analysis to estimate CEP, MP, and MAC under the meta-frontier and the group-frontier, respectively.…”

mentioning

confidence: 99%

“…Additionally, it is accepted that there exists significant heterogeneity in terms of the production technology among various sectors [11], which is regarded as an obstacle to the objective evaluation of CEP, MP, and MAC [12]. Therefore, taking the technology heterogeneity into consideration, we employ a joint framework consisting of the directional distance function (DDF) and meta-frontier analysis to estimate CEP, MP, and MAC under the meta-frontier and the group-frontier, respectively.…”

mentioning

confidence: 99%

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CO2 Emission Performance, Mitigation Potential, and Marginal Abatement Cost of Industries Covered in China’s Nationwide Emission Trading Scheme: A Meta-Frontier Analysis

2017

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China's nationwide emission trading scheme (CN-ETS) is scheduled to be launched in 2017. It is of great urgency and necessity to obtain a good understanding of the participating sectors of CN-ETS in terms of energy utilization and CO 2 emissions. In this regard, it should be noted that the findings may be biased without taking industry heterogeneity into consideration. To this end, a meta-frontier framework with the directional distance function is employed to estimate the CO 2 emission performance (CEP), mitigation potential (MP), and marginal abatement cost (MAC) at sector levels under the meta-frontier and the group-frontier. The results indicate that significant disparities in the CEP, MP, and MAC exist under both frontiers among various sectors, and the sectoral distributions of CEP, MP, and MAC are found to be different between the two frontiers. Additionally, the differences between the two frontiers in terms of CEP, MP, and MAC are considerable, and exhibit unequal distributions among these sectors. Notably, MAC under both frontiers and the difference between them are found to be significantly correlated with the carbon intensity. Finally, policy implications are provided for the government and participating enterprises, respectively.In the context of achieving the construction and operation of CN-ETS, it is of great urgency and necessity to obtain a good understanding of the participating sectors in terms of energy utilization and CO 2 emissions [7]. In this regard, estimating the CO 2 emission performance (CEP), mitigation potential (MP), and marginal abatement costs (MAC) for these sectors can provide valuable information for the governments and participating enterprises. From the perspective of the government, a good knowledge of CEP, MP, and MAC could help design appropriate market mechanisms for the CN-ETS, e.g., the estimated MAC may be used as a reference for carbon pricing [8,9]. On the other hand, a comprehensive acquaintance of MAC among the participating sectors could help the participating enterprises to determine the best mitigation strategies [10]. Moreover, to the best knowledge of the authors, there have been few studies on the CEP, MP, and MAC of the sectors covered in the CN-ETS, and this paper aims to fill this research gap.Additionally, it is accepted that there exists significant heterogeneity in terms of the production technology among various sectors [11], which is regarded as an obstacle to the objective evaluation of CEP, MP, and MAC [12]. Therefore, taking the technology heterogeneity into consideration, we employ a joint framework consisting of the directional distance function (DDF) and meta-frontier analysis to estimate CEP, MP, and MAC under the meta-frontier and the group-frontier, respectively. Following this, we investigate the sectoral distributions of CEP, MP, and MAC under both frontiers, and analyze the differences between the two frontiers at sector levels. Finally, several policy recommendations for the CN-ETS are made based on the conclusions. The rest of the paper...

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Environmental efficiency and abatement cost of China's industrial sectors based on a three-stage data envelopment analysis

Cited by 67 publications

References 43 publications

Evaluating the Investment Efficiency of China’s Provincial Power Grid Enterprises under New Electricity Market Reform: Empirical Evidence Based on Three-Stage DEA Model

Evaluating the Investment Efficiency of China’s Provincial Power Grid Enterprises under New Electricity Market Reform: Empirical Evidence Based on Three-Stage DEA Model

Will regional economic integration influence carbon dioxide marginal abatement costs? Evidence from Chinese panel data

CO2 Emission Performance, Mitigation Potential, and Marginal Abatement Cost of Industries Covered in China’s Nationwide Emission Trading Scheme: A Meta-Frontier Analysis

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