Estimation and Comparative Analysis of Environmental Efficiency in China, with and without Consideration of Haze
Dongdong Ma1, 2, Feng He2, Guifang Li3, Lili Chen2
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1School of Economics, Henan University of Economics and Law, Zhengzhou 450046, China
2Donlinks School of Economics and Management, University of Science and Technology Beijing,
Beijing 100083, China
3School of Economics, Renmin University of China, Beijing 100872, China
Submission date: 2017-05-04
Final revision date: 2017-06-13
Acceptance date: 2017-06-15
Online publication date: 2017-11-17
Publication date: 2018-01-02
Pol. J. Environ. Stud. 2018;27(1):201–211
This paper aims to introduce the new constraints of PM2.5 into the environmental efficiency research framework, based on the provincial panel data of China during 2001-12. The authors examine environmental efficiency with and without consideration of PM2.5, conduct hypothesis tests on these environmental efficiencies, and analyze the energy savings and haze reduction. The results indicate that the overall environmental efficiency score is inefficient. The average environmental efficiency scores are 0.706 and 0.867 with and without the consideration of PM2.5, respectively, and omitting PM2.5 would result in biased environmental efficiency change. In addition, empirical analysis shows that there is an unbalanced regional development and significant differences among provinces in environmental efficiency. Last but not the least, the potential savings of energy, water, and regional haze reduction average 24.26%, 39.16%, and 26.49%, respectively.