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Open AccessArticle

Total Factor Energy Efficiency of China’s Industrial Sector: A Stochastic Frontier Analysis

by Xiaobo Shen 1 and Boqiang Lin 2,*
1
China Center for Energy Economics Research, School of Economics, Xiamen University, Xiamen 361005, China
2
Collaborative Innovation Center for Energy Economics and Energy Policy, China Institute for Studies in Energy Policy, School of Management, Xiamen University, Xiamen 361005, China
*
Author to whom correspondence should be addressed.
Academic Editor: Fausto Cavallaro
Sustainability 2017, 9(4), 646; https://doi.org/10.3390/su9040646
Received: 25 March 2017 / Revised: 12 April 2017 / Accepted: 14 April 2017 / Published: 19 April 2017
Based on stochastic frontier analysis and translog input distance function, this paper examines the total factor energy efficiency of China’s industry using input-output data of 30 sub-industries from 2002 to 2014, and decomposes the changes in estimated total factor energy efficiency into the effects of technical change, technical efficiency change, scale efficiency change and input-mix effect. The results show that during this period the total factor energy efficiency in China’s industry grew annually at a rate of 3.63%; technical change, technical efficiency change and input-mix effect contributed positively to the change in total factor energy efficiency; while scale efficiency change contributed negatively to it. View Full-Text
Keywords: Malmquist productivity index; total factor energy efficiency; stochastic input distance function; China’s industry Malmquist productivity index; total factor energy efficiency; stochastic input distance function; China’s industry
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Shen, X.; Lin, B. Total Factor Energy Efficiency of China’s Industrial Sector: A Stochastic Frontier Analysis. Sustainability 2017, 9, 646.

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