Regional differences in the spatial characteristics and dynamic convergence of environmental efficiency in China

Abstract

This study uses the undesirable output and super-efficiency slacks-based measure combined with window (WIN-US-SBM) data envelopment analysis (DEA) to evaluate the environmental efficiency (EE) in 30 Chinese provinces, from 2005 to 2016, explores regional differences in the EE, and uses the dynamic spatial Durbin model (DSDM) to analyze regional differences in effects of important factors on the convergence of EE. It reveals that EE in the eastern area is higher than EE in the central and western areas, and a positive spatial autocorrelation exists in the interregional EE. The difference in provincial EE gradually narrows over time and tends to converge to its own steady-state level. Economic growth reduces EE for the central and western areas and improves efficiency for the eastern area; economic growth from surrounding areas indirectly promotes local EE for the eastern area. Foreign direct investment (FDI) promotes EE in the eastern and central areas, and FDI in the adjacent areas has a positive effect on local EE for the eastern area. Export reduces EE for all areas, and export in surrounding areas indirectly promotes local EE for the central area. Industrialization reduces EE in the western area, and industrialization in the surrounding areas increases local EE for the eastern area. Energy efficiency promotes EE for the central area, urbanization increases EE for the central area, and urbanization of the surrounding areas reduces local EE for the eastern area.