Capital allocation efficiency evaluation of energy conservation and environmental protection enterprises in the Yangtze River Delta of China

Abstract

Various measures are implemented to promote the construction of China’s ecology. These measures aim to accelerate the green transformation of the economy and promote the rapid development of energy conservation and environmental protection industry under the promotion of relevant policies. Consequently, the numbers of enterprises and the market scale have shown explosive growth. However, energy conservation and environmental protection enterprises are faced with lack of technological innovation, shortage of capital, and high cost. Effective measures must optimize the efficiency of capital allocation. To evaluate the capital allocation efficiency of energy conservation and environmental protection enterprises, 26 listed companies of energy conservation and environmental protection in the Yangtze River Delta of China were selected as samples. Monetary capital, accounts receivable, inventory, fixed assets, and construction in progress were used as input scalars. Net profit, undistributed profit, and surplus reserve were used as output variables. The Data Envelopment Analysis (DEA) model was used for analysis. Results show that capital allocation efficiency of 11 sample companies is DEA-effective. Power, heat, gas, water production, and supply industry rank first with the real estate industry divided by industry. Shanghai ranks first in the regional division. Specific improvement strategies are proposed for non-DEA effective sample enterprises.