Industrial three-division network system in China: efficiencies and their impact factors

The industrial production system can be divided into energy consumption (EC), wastewater treatment (WWT), and waste gas treatment (WGT) stages. Based on three stages, this paper presents an empirical investigation on China’s industrial efficiencies and the impact factors between 2011 and 2015. Specifically, we apply the network slacks-based measure (SBM) model to evaluate the industrial eco-efficiency, and calculate the division efficiencies via efficiency decomposition approach. Furthermore, the factors affecting the industrial efficiencies are explored through Tobit regression. We find that (1) there is a great potential to improve the eco-efficiency, and for most provinces, the EC efficiencies are highest, followed by the WGT efficiencies, and the WWT efficiencies are the lowest. (2) The efficiencies present obvious area disparities, the eco-efficiency of the eastern area is the highest except for 2012 and 2013, and the eastern area behaves best at the EC stage, while the western area at the WGT stage and the central area fluctuate greatly at the WWT stage. (3) Technological innovation and urbanization level hinder the improvements of eco-efficiency, while economic structure, industrial structure, and economic development level are positive impact factors, especially the industrial structure. Moreover, environmental regulation insignificantly affects the eco-efficiency but exerts a positive effect on the WGT efficiency.