Analysis of Total Factor Efficiency of Water Resource and Energy in China: A Study Based on DEA-SBM Model

One of the serious issues that China faces during its fast economic development is the low input-output efficiency of water and energy resources and growing water pollution. With the current economic development model of China, economic growth still requires large input of water resource and energy resource. This paper has focused on the total factor efficiency of water resource and energy resource by each province in China. We treat the undesirable outputs as outputs in the DEA-SBM Model instead of as inputs in previous studies, and design a new MATLAB programming to achieve optimization solutions of multi-variable constrained nonlinear functions to evaluate the Total Factor Efficiency of Water resource (TFEW) and the Total Factor Efficiency of Energy (TFEE) in China accurately. By using the method, this paper has analyzed the TFEW and TFEE in China from 2003 to 2014 by economic zones and typical provinces and provided corresponding policy recommendations.