Regional Differences in Energy and Environmental Performance: An Empirical Study of 283 Cities in China

This paper proposes a new non-radial biennial Luenberger energy and environmental performance index (EEPI) to measure the energy and environmental performance (EEP) change in various Chinese cities. The sources of EEP change, in terms of technical efficiency change and technological change, are examined by Luenberger EEPI. The contributions from specific undesirable outputs and energy inputs to the EEP change are identified by means of the non-radial efficiency measure. The proposed approach is applied to evaluate the EEP of the industrial sector in 283 cities in China over 2010–2014. Factors influencing the emission abatement potential are investigated by employing geographically weighted regression (GWR) model. We find that (1) changes in EEP can be attributed to technological progress but that technological progress slows down across the study period; (2) the soot emission performance experiences a downtrend among four specific sub-performances (i.e., energy, wastewater, SO2 and soot performances) in line with the truth that severe haze happened frequently in China; (3) the best performers begin to move from the coastal to inland cities with the less resource consumption and higher ecological quality; (4) cities with the strongest positive effect in regards to pollution intensity on emission abatement potential are located in the areas around the Bohai Gulf, where air pollution is particularly severe.