The Research On China’s Provincial Energy Efficiency Based On Neutral Cross-efficiency Malmquist Index

The contradiction between growing energy consumer demand and limitedresources and a series of environmental problems brought about by energyconsumption makes us to realize the importance of energy issues.By makingresearching energy efficiency of the various provinces in China，this paper aims tohelp us learn different region’s real level of energy efficiency and give somereasonable policy recommendations for the improvement of China’s energy efficiency.From the standpoint of traditional DEA model and taking environmental pollutionoutputs into account, according to Chinese provincial panel data from2001to2010,the article established neutral DEA cross efficiency model and interval crossefficiency DEA model considering all weight schemes. According to various fossilenergy consumption, the paper has estimated carbon dioxide emissions of allProvinces, meanwhile, it absorbed carbon dioxide emissions and sulfur dioxideemissions which present environmental pollution outputs into the model, meanwhile,the energy efficiency results of different model were analyzed and compared. Lastly,the paper established Malmquist model which based on traditional DEA model andneutral DEA cross efficiency, so the energy efficiency Malmquist index can bedecomposed into technical progress index and technical efficiency index and we canfurther analyze each province’s energy efficiency change.The research results show that: during the periods of2001to2010, China’s energyefficiency generally has an upward trend, and technical efficiency progress is mainfactor affecting improvement of energy efficiency in China. Energy efficiency of thevarious provinces in China is significantly different, and its distribution tends to behigher in east and lower in west. Besides, the gap of energy efficiency is largebetween east and west, and it is growing. The provinces of Western region have ahigher speed in improving the energy efficiency than provinces of other regions,however, from the decomposition of the energy efficiency, we can find eastern regionhas higher energy efficiency index, and Western region has a higher technologicalprogress index, it shows the rapid increase of the energy efficiency of the westernregion due to technological progress.