Total Factor Energy Efficiency Measurement in the Provinces of China along the 'Belt and Road'

Abstract

Energy is an important element of a regional economic development strategy. According to the China Energy Statistical Yearbook and the China Statistical Yearbook, the proportion of energy efficiency in the provinces along the Belt and Road (BR) in China is not proportional to the contribution rate of their GDPs. To achieve high quality economic growth, it is necessary to improve the energy efficiency of the provinces along the BR in China. The objective of this study is to conduct a total factor energy efficiency (TFEE) analysis of the provinces along the BR in China. In this paper, data envelopment analysis (DEA) method is incorporated under static dimensions, and under dynamic dimensions, the Malmquist index is introduced to evaluate the TFEE of these provinces from 2006 to 2015. The empirical results show that the TFEE in the provinces in China along the BR increased yearly from 2006 to 2015. The empirical results also indicate that there are huge differences in energy efficiency between different provinces but that the energy efficiency gap in different provinces has been gradually narrowed. From a regional perspective, the TFEE in the eastern region of China achieved the highest value, followed by the western region and the northeast region. Importantly, the empirical results reveal that there are different factors restricting the TFEE in the three regions; the eastern region is restricted by technical efficiency issues, and the northeast and western regions are restricted by issues relating to technological progress.