Energy and Environmental Efficiency of China’s Transportation Sector: A Multidirectional Analysis Approach

Abstract

With the rapid economic development, the transportation sector becomes one of the high-energy-consumption and high-CO2-emissions sectors in China. In order to ensure efficient use of energy and to reduce CO2 pollution, it is important to gain the best performance standards in Chinas transportation sector. Data envelopment analysis (DEA) has been accepted as a popular tool of efficiency measurement. However, previous studies based on DEA are mainly restricted to the radial expansions of outputs or radial contractions of inputs. In this paper, we present a nonradial DEA model with multidirectional efficiency analysis (MEA) involving undesirable outputs for the measurement of regional energy and environmental efficiency of Chinas transportation sector during the period 20062010. We not only evaluate the energy and environmental efficiency level and trend of Chinas transportation sector but also investigate the efficiency patterns of 30 regions and three major areas of China. Additionally, we identify the energy saving potential and CO2 emissions reduction potential for each province and area in China in this study.