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Open AccessArticle

The Synergy in the Economic Production System: An Empirical Study with Chinese Industry

by 1,* and 2
1
Donlinks School of Economics and Management, University of Science and Technology Beijng, Beijing 100083, China
2
Institute of Operational Research and Mathematical Economics, School of Economics, Renmin University of China, Beijing 100872, China
*
Author to whom correspondence should be addressed.
Sustainability 2019, 11(4), 980; https://doi.org/10.3390/su11040980
Received: 11 December 2018 / Revised: 30 January 2019 / Accepted: 31 January 2019 / Published: 14 February 2019
Due to the difference in pollutants discharged, along with heterogeneous abatement technology, the structural and model design of the economic production system needs to consider these differences. This study first proposes a network slacks-based model (SBM) to address the inefficiency of the production system after considering pollutant abatement technology heterogeneity for different kinds of pollutant. Then, we employ the model to study the inefficiency of the Chinese industrial production system, analyzing the inefficiency in the stages of economic production and pollutant treatment. Furthermore, the regional distribution of inefficiencies concerning SO2 (NOx) generation (emission) are discussed and compared. The results show that only the joint reduction of NOx in two sub-stages simultaneously is feasible, and the synergistic pollutant reductions seems limited. View Full-Text
Keywords: undesirable output; network DEA model; synergy effect; regional distribution undesirable output; network DEA model; synergy effect; regional distribution
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Shao, Y.; Han, S. The Synergy in the Economic Production System: An Empirical Study with Chinese Industry. Sustainability 2019, 11, 980.

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