Dynamic changes in the energy-carbon performance of Chinese transportation sector: a meta-frontier non-radial directional distance function approach

The transportation sector is the main energy consumer and carbon emitter in China. To accurately evaluate the dynamic changes in the energy-carbon performance of the sector and to propose alternatives for sustainable development, this paper proposes an approach incorporating the meta-frontier method, global benchmark technology, and non-radial directional distance function. Using this approach, the paper proposes a new definition, named the global meta-frontier non-radial Malmquist energy-carbon performance index(GMNMECPI). GMNMECPI can be decomposed into technical efficiency change (EC), best-practice gap change (BPC), and technology gap change (TGC). This new method was then used to estimate the dynamic changes of energy-carbon performance in China's transportation sector from 2006 to 2015. The paper also identifies the effect of current policies. The empirical results show that the energy-carbon performance of China's transportation sector decreased annually by 1.636% during the study period. This reduction was mainly caused by a significant technology lag in the central area while primarily influenced by deterioration in efficiency in both the east and west. There is a distinct heterogeneity in technology across China's three areas. Based on the findings, the paper closes with policy implications.