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Total Factor Energy Efficiency of China’s Industrial Sector: A Stochastic Frontier Analysis
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Version 1
: Received: 12 April 2017 / Approved: 13 April 2017 / Online: 13 April 2017 (04:35:55 CEST)
A peer-reviewed article of this Preprint also exists.
Shen, X.; Lin, B. Total Factor Energy Efficiency of China’s Industrial Sector: A Stochastic Frontier Analysis. Sustainability 2017, 9, 646. Shen, X.; Lin, B. Total Factor Energy Efficiency of China’s Industrial Sector: A Stochastic Frontier Analysis. Sustainability 2017, 9, 646.
Abstract
Based on stochastic frontier analysis and translog input distance function, this paper examines the total factor energy efficiency of China’s industry using input-output data of 30 sub-industries from 2002 to 2014, and decomposes the changes in estimated total factor energy efficiency into the effects of technical change, technical efficiency change, scale efficiency change and input-mix effect. The results show that during this period the total factor energy efficiency in China’s industry grows annually at a rate of 3.63%, technical change, technical efficiency change and input-mix effect contribute positively to the change in total factor energy efficiency, while scale efficiency change contributes negatively to it.
Keywords
malmquist productivity index; total factor energy efficiency; stochastic input distance function; China’s industry
Subject
Business, Economics and Management, Economics
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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