The Positive Analysis Of China’s Regional Circular Economic Efficiency Based On The Three-stage DEA Model

In the past thirty years since the Reform and Opening, the economy of our countrygrew at a very fast speed which has exceeded those of many developed countries. In2012when the world suffered from economy recession, the GDP of our country alsogrew at the rate of7.8%。Our achievement of economy has made a great impressionon the world economy. However, the economy growth has also brought about energycrisis and environmental problems. Resources have been overused due to theextensive economy with “three highs”. Besides, ecological degradation andenvironmental pollution which were due to the blind pursuit of economy growth haveinfluenced social production and human life. To solve the energy crisis andenvironmental problems, we should develop circular economy. Circular economycalls for high efficient and recycle use of resources and counting for the tolerance ofecology. It is a new kind of sustainable developmental economy.This paper uses the three-stage DEA model to evaluate the circular economicdevelopment of the four major economic regions during2009-2011in our countryand then the technology efficiency value, pure technology efficiency value and scaleefficiency value of each region are evaluated. It is aimed to evaluate the circulareconomic development situation and find the characteristics and shortcomings of thefour major economic regions when the circular economy is developed. The resultsshow the eastern region is of the highest circular economic level. The efficiencyvalues of northeast region, central region and western region are low, which meansthere is a large space for the three regions to improve their circular economic level.Besides, we draw the conclusion that circular economy of most regions in our countryis in the increasing stage of returns to scale. And the low level of technology is themain reason which attributes to the inefficiency in circular economic development inour country. In the end, this paper gives some constructive suggestions to improve thecircular economic development of the four regions.