Regional energy efficiency, carbon emission performance and technology gaps in China: A meta-frontier non-radial directional distance function analysis

At present, China is the largest primary energy consumer and carbon emitter in the world. Meantime, China is a large transitional economy with significant regional gaps. Against such backgrounds, the calculated results of energy and carbon performance indicators may be biased, without considering heterogeneity across regions. To this end, after incorporating region-heterogeneity, this paper provides detailed information, regarding energy efficiency, carbon emission performance and the potential of carbon emission reductions from regional perspectives, which may be important and useful for policy makers. Our main findings are as follows. Firstly, there is significant group-heterogeneity across regions in China, in terms of energy efficiency and carbon emission performance. Secondly, there are no considerable differences between total-factor and single-factor performance indices, since there is limited substitutability between energy inputs and other production inputs. Finally, significant carbon emission reductions can be made by “catching up” for regions with low energy efficiency and carbon emission performance. Looking ahead, the Chinese government should adopt measures to promote improvements in terms of energy efficiency and carbon emission performance in the short term.