Measuring Environmental Performance Under Regional Heterogeneity in China: A Metafrontier Efficiency Analysis

This paper examines total-factor environmental performance for various regions in China based on the metafrontier directional distance function. This approach can measure the environmental performance of undesirable outputs (pollutants). Technological heterogeneity can be taken into account simultaneously by taking a metafrontier approach. First, the concept of a generalized metafrontier directional distance function is proposed for the model. Second, several standardized composite indicators of environmental performance are developed. Third, the metafrontier directional distance function is estimated by solving a series of data envelopment analysis models. Finally, various regions in China are empirically examined, and the results and their implications are discussed. The results indicate substantial heterogeneity in environmental performance across regions, and some policy suggestions are proposed based on these results.