Total-factor energy efficiency of coal consumption: An empirical analysis of China's energy intensive industries

Improvement of coal consumption efficiency is very important both for China in solving its problems of energy security and environmental pollution and for the world in addressing the issue of greenhouse gas emissions. Using a total-factor framework, this paper employs a data envelopment analysis (DEA) approach to evaluate the coal consumption efficiency of six energy intensive sub-industries in China in 2015. Coal consumption efficiency is factorized into economic efficiency and environmental efficiency, with sulfur dioxide, nitrogen oxide, and industrial smoke, dust and soot emissions treated as undesirable outputs of energy consumptions. The results show the following. (1) Of the six energy intensive subindustries studied, two exhibit both DEA-effective coal economic efficiency and coal environmental efficiency. Coal economic efficiency is found to be greater than coal environmental efficiency, indicating that the benefits of economic efficiency have masked the negative effects of the environmental impact. China should therefore pay more attention to the clean utilization of coal. (2) Low environmental efficiency mainly resulted from the joint effects of pure technical efficiency and scale efficiency; therefore, enterprises in these industries must engage in management efforts to improve their ability to manage large enterprises. (3) The energy intensive industries characterized by coal environmental efficiency that failed to achieve pure technological effectiveness all exhibited input redundancy or output inadequacy of varying degrees while showing a potential for energy conservation and emissions reductions. (C) 2017 Elsevier Ltd. All rights reserved.