Estimation of potential energy saving and carbon dioxide emission reduction in China based on an extended non-radial DEA approach

In the process of setting operational targets to achieve sustainable development of economy, environment and natural resources, estimation of potential energy saving and potential CO2 emission reduction becomes extremely important. This estimation can be conducted based on the energy efficiency evaluation for different decision-making units (DMUs) by data envelopment analysis (DEA). Non-fossil energy is an important component of energy consumption in China, and it has great impacts on energy efficiency and energy-related carbon dioxide (CO2) emissions. This paper proposes a non-radial DEA model to evaluate regional energy efficiencies in China. In the proposed model, non-fossil energy is treated as a fixed input. Based on the model, a method of measuring potential energy saving and CO2 emission reduction for efficiency improvement is also presented. The proposed approaches are illustrated by using a regional dataset in China. Based on the application results, some implications for improving energy efficiency and reducing CO2 emissions in China are provided.