Evaluation of Chinese Environmental Efficiency based on CEPI

This paper first constructs a Comprehensive Environmental Pollution Index (CEPI) based on the entropy weight method and then introduces CEPI into the environmental efficiency research framework. We examine regional environmental efficiency with SBM-Undesirable model and BCC model either with or without consideration of CEPL The significant findings are as follows: First and foremost, the efficiency values are 0.627 and 0.867, respectively, when CEPI is considered and when CEPI is not considered In addition, the regional environmental efficiency is unevenly developed in China. The degree of loss in environmental efficiency caused by CEPI of central and western provinces is higher than that in eastern provinces. Moreover, the environmental efficiencies of various provinces and cities in China vary greatly, and there considerable room for improvement. Last but not least, the Wilcoxon Rank Sum test shows that omitting CEP! would result in a biased environmental efficiency estimation.