Measurement and Structural Factors Influencing China’s Provincial Total-Factor Energy Efficiency Under Resource and Environmental Constraints

Abstract

We studied the measurement and structural factors influencing China’s provincial total-factor energy efficiency (TFEE) under resource and environmental constraints, using spatial weight matrix analysis, spatial econometric model selection, a generalized spatial econometric model with unknown heteroscedasticity, and a directional distance function global Malmquist–Luenberger (GML) superefficient model. The findings of this empirical research are as follows. Resource and environmental constraints should be considered while measuring TFEE. The results obtained in such cases are more accurate reflections of the actual situation in China. Furthermore, spatial effects should be considered when analyzing the factors influencing provincial TFEE; otherwise, the estimates will be biased. The following conclusions were obtained from the results of the empirical analysis: China’s provincial TFEE continued to decline under resource and environmental constraints, and the trend is not optimistic, implying an undue reliance on coal resources, which reduce TFEE by a considerable extent. Moreover, China’s interprovincial TFEE is affected by a variety of structural factors.