Energy efficiency analysis of the economic system in China during 1986-2012: A parallel slacks-based measure approach

The economic system in China is composed of three internal parallel industries: primary, secondary and tertiary industries. To examine energy efficiency of the economic system, this paper proposes a parallel slacks-based measure approach. In the described approach, the measures of energy efficiencies and energy saving potentials for the whole system and its three industries are defined. Application of the proposed approach to the economic system in China during 1986-2012 shows that it can be effectively used to measure energy efficiency of the evaluated system with several parallel sub-systems. The institutional influential factors of energy efficiency in China are also examined. The following findings can be achieved based on the application results: (1) the inefficiency of the economic system in China is mainly sourced from the lower energy performance of the secondary industry; (2) energy efficiency of the economic system increases during the study time period with an exception during 2001-2005; (3) it is better for the whole economic system to improve energy efficiency, which can help to save much more energy consumption in production in China; and (4) economic development is estimated to have positive impacts on national energy efficiency, while energy structure adjustment and industrial structure optimization have negative effects on national energy efficiency. (C) 2015 Elsevier Ltd. All rights reserved.