China's Regional Industrial Energy Efficiency Evaluation Based On Improved Super SBM

It has been thirty years since China's reform and opening up, but its rapid economic growth has led to a lot of energy consumption and CO₂ emissions. China has become the world's largest energy consumer and CO₂ emitter surpassing the United States. Chinese government has put forward the strategic objectives of establishing environmental friendly and resource-saving society to achieve sustainable development, improve energy efficiency and control greenhouse gas emissions. Terminal energy consumption of industry occupies the largest proportion of that in China, which reaches 70%. Energy utilization level of industrial has an important influence on China's overall energy utilization level. This paper employs an improved super SBM models with undesirable output incorporated and combines it with the inverse DEA to study industrial energy efficiency and its influential factors, energy conservation, emissions reduction potential during 2006 to 2011.The main conclusions of this paper are as follows: It is obvious that China's regional industrial energy efficiency condition differs greatly, and Box plot shows that efficiency value of each province in China distributes differently, especially yearly energy efficiency values of Tianjin, Beijing, Shanghai and Guangdong are higher than 1, far ahead of other regions'; Eastern energy efficiency value, with obvious advantage, is higher than that of the central area, and the western rank the last; results of Tobit regression analysis show that regional GDP, per capita GDP, economic structure, foreign direct investment, industrial new fixed investment and the geographical position located in the eastern have a positive effect on regional industrial energy efficiency, while regional industrial structure and population density have a negative impact on regional industry energy efficiency, but geographical position located in the central has no significant impact on industrial energy efficiency; Regions of Hebei, Henan, Shandong, Shanxi, Hubei, Liaoning and Sichuan have a larger energy saving potential than others, meanwhile, Shandong, Henan, Hebei, Hubei, Hunan, Sichuan and Shanxi have the largest emissions reduction potential; energy saving potential of central area and the western ranks the first alternately, as to areal emissions reduction potential for CO₂, the central area runs first, the western runs after central areas, and the eastern ranks the last.Based on the conclusions above and the analysis in this paper, four recommendations to increase industrial energy efficiency are proposed: increasing total economic activity in regions of low industrial energy efficiency level, adjusting regional industrial structure according to the characteristics of regional energy output, accelerating energy structure adjustment and electricity replacement of industrial enterprises in China, quantitating carbon credits of industrial enterprises and opening carbon emissions trading market.