TOTAL-FACTOR ENERGY EFFICIENCY OF REGIONS IN CHINA CONSIDERING NATURAL DISASTER EFFECTS

This paper analyzed total-factor energy efficiency (TFEE) of 30 regions in China during the period of 2004-2010, considering natural disasters effects. Based on the input-oriented data envelopment analysis (DEA), the paper computes the total-factor energy efficiency of 30 regions in China and the relationship among three main regional area of China, the east area, the middies and the west. The paper also further explored the total-factor energy efficiency by using Malmqusit index to find out the main factor of it and proposed improvement advices based on the analysis. The empirical results of the paper indicate that the total-factor energy efficiency of China in the period is decreasing and that of different regions has varies changes during the period; the total-factor energy efficiency of three main areas is also different with each other but has the trend of convergence. The paper also came to the conclusion that technical change is a double-edged sword, which makes less contribution to total factor energy efficiency compared to ignoring the effects. Thus, the government needs to make reasonable use of technology to minimise the negative effects and increase investment in technology science and encourage technological innovation, thus really improve the energy efficiency in China.