Energy efficiency evolution of China's paper industry

China's paper industry accounts for a larger proportion of the global paper industry and consumes large amounts of energy. Energy conservation and pollution reduction of the industry have become the focus of China's national development strategy. Energy efficiency is an important index which directly determines the amounts of energy consumption and pollution emissions. To understand the energy efficiency evolution of China's paper industry, this paper establishes an input-output data of the paper industry for 29 provinces in China and applies DEA method and econometric models to estimate and comprehensively discuss the energy efficiency issues based on the framework of total factor efficiency. Our results indicate that China's paper industry has a large energy saving potential even though its energy efficiency has improved during the period 1990-2013. The saving potential is about 65% under the meta-frontier and 44% under the group-frontier. Moreover, there are significant differences between different regions in production technology and energy efficiency. The performance of eastern China is better than other regions. But the technology gaps between the different regions are shrinking and converging over time. Finally, some policy recommendations are proposed to improve the energy efficiency of the industry.