Analysis Of Industrial Energy Efficiency And Potential Reductions Based On DEA Model In Provinces Of China

Industrilization greatly promotes social and economic development in China. In 2010,China surpassed Japan as the second largest economy. However,hiding from such economic success, China has become the largest carbon emitter and energy consumer in the world. The economic development is intensively conflicting with resources, environment. Under such serious condition, Chinese government has realized that the current way of development is not sustainable. Industrial sector is both the largest energy end-user and the largest carbon emitter in China. From 2007 to 2009, the energy consumption of industrial sector accounts for 70% of the total one. Therefore, the key to improving energy efficiency?saving energy consumption and reducing CO2 emmition lies in limiting the energy consumption of industrial sector.This paper builds a non-radial DEA model to analyze the industrial energy efficiency of 30 provinces of China from 2004 to 2011 and conducts this evaluation from both static energy efficiency and dynamic energy efficiency. After making clear of energy efficiency in the sample period, this paper investigates the potential of energy saving and carbon reduction of each DMU due to energy structure adjustment.As the result shows, from 2004 to 2011, the level of energy efficiency is not optimistic in the term of overall nationwide, and there exists obvious geographical disparity among areas. The east area has a better performance than the central and west ones whether in the average efficiency score or the number of efficient DMUs, which is in accordance with the industrial development of China. In the analysis of dynamic energy efficiency with Malmquist index, it shows that the energy efficiency of industrial sector is keeping rising, and positive changes are taking place. As to specific growth rate, the improvement of energy efficiency in east area is the biggest. In the analysis of the role of energy structure adjustment in energy saving and carbon reduction, it indicts that the lower percentage of coal in total energy consumption helps the reduction of energy consumption and carbon emission. However, the adjustment of energy structure is a long process, and need strengthen the deliverability of all energy.