Analysis of industrial eco-efficiency and its influencing factors in China

Industry is the largest sector for energy consumption and pollution emissions in China. Thus, improving industrial eco-efficiency is necessary for China to achieve sustainable development. Based on panel data from 31 industrial sectors from 2001 to 2015, a three-stage data envelopment analysis model was used to empirically explore industrial eco-efficiency and its influencing factors from the perspective of industrial heterogeneity. The results show that the overall level of industrial eco-efficiency in China is not high, first declining and then rising during the study period. Low eco-efficiency was mainly due to low scale efficiency. After removing the influences of external environmental factors and noise, industry profit rates, ownership structures, and foreign direct investments were all significantly and positively correlated with eco-efficiency. Environmental regulations were significantly and negatively correlated, while the intensity of research and development exhibited no linear relationship. Industrial heterogeneity significantly affects eco-efficiency. Capital-intensive industries had the highest eco-efficiencies, followed by resource-intensive industries and labor-intensive industries, respectively. Graphic abstract Comparison of technical efficiency (TE) before and after adjustment on a panel of 31 industries in China from 2001 to 2015.