Energy efficiency of China's iron and steel industry from the perspective of technology heterogeneity

Abstract

This paper investigates energy efficiency with the presence of undeniable outputs, efficiency gaps across regions, and determinants of inefficiency of the Chinese Iron and Steel (IS) industry by combining hybrid measure technology and the meta-frontier approach. Empirical results obtained from analyses based on panel data spanning 2010-2015 reveal the necessity of green transition of the IS industry. Simultaneously addressing power supply, environmental impacts, and value creation of energy is still one of the most formidable challenges facing the IS industry nowadays. Moreover, distinct spatial heterogeneity in technology exists extensively across the regions. Energy efficiency of the IS industry in the eastern region performed the best, whereas the central and western areas fell behind due to the intension of managerial failure and expansion of the technology gap. Based on the findings, general and regional-specific policy implications and suggestions are posited.