Research On Total Factor Energy Efficiency Of China’s Iron And Steel Industry Based On Inter-provincial Panel Data

Energy is an important basis for economic development, energy efficiency attracted a lotof attention increasingly, and has become one of the hot issues of the Energy Policy Research.But now most of the research for energy efficiency was on the macro level, or be onprovincial level or national level by industry or sub-industry research, and for specificindustry research of the energy efficiency is relatively rare. Each industry has different factorendowment and production structure. If you use different industries as a cross-reference of thedecision-making unit to research on the total factor energy efficiency, there will be asystematic error, and it is can’t provide a reference for the development of the industry.This paper used non-parametric DEA model to calculate the total factor energy efficiencyof the iron and steel industry of28provinces, based on inter-provincial panel data from1991to2010, to explore the general trend of the development of China’s iron and steel industry.Then, using MPI index to decompose the total factor energy efficiency into three exponential,analyzing the impact of the three types of exponential on the total factor energy efficiency.Ultimately, the paper made a number of recommendations to increase the total factor energyefficiency in China’s iron and steel industry by the analysis of the previous.By the analysis of provincial total factor energy efficiency in steel industry, the resultshows that the energy efficiency of China’s iron and steel industry is low. In addition toindividual provinces, others relatively lower, there is a huge room for improvement of energyefficiency. As for the area, the east is highest and the other regions are lower. By thedecomposition of total factor energy efficiency, found that the technical efficiency is the mainreason to promote the total factor energy efficiency in China’s iron and steel industry. Finally,some strategies are proposed to promote the overall improvement of the energy efficiency ofChina’s iron and steel industry.