A performance evaluation of the energy, environmental, and economic efficiency and productivity in China: An application of global data envelopment analysis

The current mode of economic development in China is typified by high growth, high energy consumption, and high pollution characteristics and this has caused great stress on both energy consumption and the environment. This paper focuses on a historical analysis of China’s energy, environmental, and economic (‘E3’) efficiency and the sources of E3 productivity growth therein. A developed slacks-based measure is utilized to evaluate the performance of E3 efficiency and decompose the performance fluctuations into three components: energy, economy, and environmental efficiency fluctuations. By applying a method based on global data envelopment analysis, we also analyze the key factors responsible for the change in E3 productivity during 2002–11 from the point of view of technical progress, production scale, and management level. The results show that China performs well on the economic front, while the energy and environmental performances are not optimistic. Fortunately, energy and environmental efficiency have gradually improved in recent years. Further analysis shows that the trend in E3 productivity in China has begun to follow an ascending path. Technical progress is the most powerful contributor to China’s E3 productivity growth, while falling scale and management efficiency are the two main obstacles preventing improvement in E3 productivity.