Energy efficiency analysis on Chinese industrial sectors: an improved Super-SBM model with undesirable outputs

In this article we proposed an improved Super-SBM model dealing with undesirable outputs under the weak disposability assumption of undesirable outputs. Energy efficiencies of various industrial sectors in China from 2001 to 2010 are measured based on this model, and the influencing factors for energy efficiency are explored by Tobit regression model. Empirical results show that, during “The Eleventh Five-year Plan”, energy efficiency of each industrial sector and category has been improved to various extents, but overall efficiency variations among industries have not taken on a convergence trend. Light industry has achieved the highest energy efficiency, followed by heavy industry; while the energy efficiency of the latter has a faster growth rate compared with that of light industry; the gap between these two industries' energy efficiency has been reduced. Energy efficiency variation presents an obvious feature of industrial economy transformation. The analysis of influencing factors show that enterprise scale, industry concentration, industrial property rights structure, and government regulation all affect energy efficiency apparently, but their effects vary across industries. Lastly, based on research results, this paper gives some policy recommendations on improving energy efficiency of the industrial sectors in China.