Measuring Energy Performance for Regional Sustainable Development in China: A New Framework based on a Dynamic Two-Stage SBM Approach

Sustainable development has always been an important issue for all policy makers, even more so now, as global warming has seriously threatened the whole world. To understand the efficacy of regional sustainable policies, we proposed a dynamic, two-stage, slacks-based measure (SBM) model with carry-over and intermediate variables, highlighting the importance of an electricity portfolio, to measure overall energy performance for the purpose of regional sustainable development. In this unified linear programming framework with intertemporal evaluation, we estimated the effects of a clean electricity supply by the abatement of CO2 emissions and the gain of economic growth. The results can be used as a reference for decision makers to shape regional sustainable development policies. Using data of 30 provincial administration regions in China for the period of 2012-2017, we postulate that the lower energy performance of the Chinese regional economic system for sustainable development may be attributed to a lower electricity portfolio performance. We then postulate that investment in low-carbon energy infrastructure can combat CO2 emissions, and is also a major driving force in the regional economic growth.