Evaluation of environmental efficiency in China using data envelopment analysis |
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| Affiliation: | 1. School of Management, University of Science and Technology of China, Hefei, Anhui Province 230026, PR China;2. Dongwu Business School, Soochow University, Suzhou, Jiangsu Province 215021, PR China;1. New Mexico Institute of Mining & Technology, Department of Management, 801 Leroy Place, Socorro, NM 87801, USA;2. McGill University, Desautels Faculty of Management, 1001 Sherbrooke Street West, Montréal, QC H3A 1G5, Canada |
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| Abstract: | As a main method for achieving environmental protection, improvement of environmental efficiency is vitally important for reducing environmental risk and level of ecological scarcity. Thus, quantitative analysis of environmental efficiency is not only an important premise for understanding the situation of regional environmental protection, but also a prerequisite for designing and adjusting relevant policies. In this paper, we treat the undesirable output in an economic activity by a linear monotonic decreasing transformation approach. We employ data envelopment analysis (DEA) technique to evaluate environmental efficiency in 30 provinces of China during the period 2001–2010, and conduct hypothesis tests on these environmental efficiencies. Furthermore, we investigate the horizontal differences of environmental efficiency in six regions of China and the vertical differences among different years. The results show that our empirical tests have a high statistical reliability that provides support for prompting environmental policies in different parts of China. |
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| Keywords: | Environmental efficiency DEA Undesirable output Hypothesis tests |
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