Original Articles: 2014 Vol: 6 Issue: 3
The measurement and analysis of regional energy efficiency in China
This paper measures regional energy efficiency in China with stochastic frontier analysis (SFA), based on total factor framework. First, it discomposes influential factors for regional energy efficiency based on Cobb-Douglas production function. Based on it, it constructs a stochastic frontier production function model with panel data of 29 provinces during 2000-2009, and measures regional energy efficiency of each region in China. The results of SFA analysis indicates, currently the state of economic growth of each region in China presents increasing returns to scale, and high energy price impedes the economic growth. The principal impetus for high-speed economic growth stems from capital input, and the next are energy and labor. The improvement of regional non-energy factor efficiency depends on, mainly, the enhancement of regional institutional level and secondly on frontier technology progress. The energy efficiencies of provincial regions present steady rising during 2000-2008. In 2009, energy efficiencies of most provinces decline for the influence of world financial crisis.