Research on Total Factor Energy Efficiency of China's Steel Industry Considering Environmental Constraints

Using the DEA-based non-parametric Malmquist-Luenberger productivity index method, the authors calculated the growth rate of total factor energy efficiency of steel industry and its components in 24 provinces of China considering Sulfur dioxide emissions during 2000 to 2010. The results show that the growth rate of total factor energy efficiency of steel industry in consideration of the environmental constraints is lower than that of without considering environmental constraints. As can be seen through the decomposition of changes in total factor energy efficiency, technological progress is the main engine of growth promoting energy efficiency. From the point of view of sub-region, the total factor energy efficiency of the steel industry is much higher in the eastern region or provinces with rich coal resources, while the central and western regions and areas of poor in coal resources have a few lower efficiency. These indicate that the resource endowment and economic level have important impacts on total factor energy efficiency in the steel industry.