Chapter 3 Research Design
4. Empirical Analysis
4.1 Energy of Mainland China
4.1.1 Regional Savings Ratios for Three Major Types of Energy
4.1.1.1 Savings Ratios for Coal Consumption
As Table 10, the east area has two regions with coal consumption savings ratios always higher than 30% throughout the research period: Tianjin (02) and Liaoning (06). The central area has six regions with coal consumption target savings ratios always higher than 30%: Shanxi (04), Inner Mongolia (05), Jilin (07), Heilongjiang (08) and Hubei (17), especially Shanxi (04) and Inner Mongolia (05) with target savings ratios higher than 80%. The west area has five regions with coal consumption target savings ratios always higher than 30%: Guizhou (22), Yunnan (23), Shaanxi (24), Gansu (25), Qinghai (26), and Xinjiang (27), especially Guizhou (22) and Gansu (25) with target savings ratios higher than 60%.
Table 10 Actual consumption and target savings ratios of coal for regions in Mainland
Notes: 1. Actual consumption is in 10,000 tons.
2. Savings ratios are in percentage terms.
Table 10 and Figure 3 describe the 2000-2003 average coal consumption savings ratios in each area. The coal consumption savings ratios of the east area are the lowest, and which of the central is the highest With respect to coal consumption, the east, central, and west areas are the most, medium, and least efficient, respectively. Among the three major types of energy, the coal consumption target savings ratios are generally the highest, implying that coal consumption may be the most critical task for saving energy in mainland China.
Coal
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00
2000 2001 2002 2003 year
%
E C W
Figure 3 The average target of coal savings ratios in the three major areas of Mainland China
Table 11 shows the Mann-Whitney test on target coal savings ratios for three major areas in mainland China during 2000-2003. It presents that the target savings ratios of west area is always significantly more than east area, which of the west area is not significantly more than central area; and which of central area is not significantly more than east area. Summary of target coal savings for three areas, east area is most efficient, and west area and central area are more inefficient.
Table 11 Mann-Whitney test on target coal savings ratios for three major areas
Note: ***represents significance at the 0.01 level.
4.1.1.2 Savings Ratios for Gasoline Consumption
The east area has two regions with gasoline consumption target savings ratios always higher than 30% throughout the research period: Beijing (01) and Tianjin (02).
The central area has two regions with gasoline consumption target savings ratios always
gasoline consumption target savings ratios always higher than 30%: Guizhou (22), Shaanxi (24), Gansu (25), Qinghai (26), and Xinjiang (27), especially Gansu (25) with target savings ratios higher than 60%.
Table 12 and Figure 4 show the 2000-2003 average gasoline consumption target savings ratios in each area. The east, central, and west areas have the lowest, medium, and highest gasoline consumption savings ratios, respectively. With respect to gasoline consumption, the east, central, and west areas are the most, medium, and least efficient, respectively.
Average gasoline consumption target savings ratios of east and west areas are stable throughout the research period, which of central area are decreasing. However, the average target savings ratios of the west area always stayed above 40% during the 2000-2003 period, showing no significant improvement at all.
Table 13 shows the Mann-Whitney test on target gasoline savings ratios for three major areas in mainland China during 2000-2003. It presents that the target savings ratios of west area is significantly more than east area, which of west area is significantly more than central area; and which of the central area is not significantly more than east area. Summary of target gasoline savings for three areas, east area and central are more efficient, and west area is most inefficient.
Table 12 Actual consumption and target savings ratios of gasoline for regions in mainland China during 2000-2003
2000 2001 2002 2003
ID Region Area Actual
Consumption
Notes: 1. Actual consumption is in 10,000 tons.
2. Savings ratios are in percentage terms.
Table 13 Mann-Whitney test on target gasoline savings ratios for three major areas
Note: ***represents significance at the 0.01 level; **represents significance at the 0.05 level;
*represents significance at the 0.1 level.
Gasoline Oil
0.00 10.00 20.00 30.00 40.00 50.00
2000 2001 2002 2003 year
%
E C W
Figure 4 The average target of gasoline savings ratios in the three major areas of mainland China
4.1.1.3 Savings Ratios for Electricity Consumption
As Table 14, the east area has one region with electricity consumption target savings ratios always higher than 20% throughout the research period: Liaoning (06).
The central area has two regions electricity consumption target savings ratios always higher than 30%: Shanxi (04) and Inner Mongolia (05), especially Shanxi (04) with target savings ratios higher than 50%. The west area has four regions with electricity consumption target savings ratios always higher than 30%: Guizhou (22), Shaanxi (24), Gansu (25), and Qinghai (26), especially Guizhou (22) and Qinghai (26) with target savings ratios higher than 60%.
Figure 5 show the 2000-2003 average electricity consumption savings ratios in each area. The west area always had higher target savings ratios than others. With respect to electricity consumption, the east, central, and west areas are the most, medium, and least efficient, respectively.
Table 14 Actual consumption and target savings ratios of electricity for regions in mainland China during 2000-2003.
2000 2001 2002 2003
ID Region Area Actual
Consumption
Notes: 1. Actual consumption is in 100 million KWH.
2. Savings ratios are in percentage terms.
Electricity
0.00 10.00 20.00 30.00 40.00 50.00
2000 2001 2002 2003 year
%
E C W
Figure 5 The average target of electricity savings ratios in the three major areas of mainland China
During the 2000-2003 period, the average electricity consumption target savings ratios in three areas were stable. However, the average electricity consumption savings ratios of the west area stayed around 40% during the 2000-2003 period, showing no significant improvement.
Table 15 shows the Mann-Whitney test on target electricity savings ratios for three major areas in mainland China during 2000-2003. It presents that the target savings ratio of west area is significantly more than central area, which of the west area is significantly more than east area; and which of central area is not significantly more than east area. Summary of target electricity savings for three areas, east area and central area are more efficient and west area is most inefficient.
Table 15 Mann-Whitney test on target electricity savings ratios for three major areas
Note: ***represents significance at the 0.01 level; **represents significance at the 0.05 level.
4.1.2 Benchmark for Types of Energy Savings Ratios
From Tables 10, 12, 14 and 16 the five regions in mainland China are found to always have zero target savings ratios of three major types of energy, implying that their three major types of energy are efficient during the research period. One of these regions is located in the central area: Hunan (18), others are located in the east area:
Shanghai (09), Fujian (13), Shandong (15), and Guangdong (19). It shows that the above five regions are the benchmark for the industrial three major types of energy savings ratios.
4.1.3 General Comments on Three Types of Energy Savings
From Table 17, the four-year average target savings ratios of coal consumption for the east, central, and west areas are respectively 18.58%, 44.00%, and 59.80%.
The four-year average target savings ratios of gasoline consumption for the east, central, and west areas are respectively 13.43%, 22.70%, and 45.04%. The four-year average target savings ratios of electricity consumption for the east, central, and west areas are respectively 8.55%, 16.42%, and 43.70%.
Our empirical findings of this part show that the east area has most of the efficient regions with respect to the three major types of energy. The east area has the lowest average target savings ratios for the three major types of energy. Therefore, the west area consumed the highest grade of energy, but they still cannot provide better living standard. This means that the least-developed west area is using environmental goods inefficiently.
Comparing to those cases of gasoline and electricity, the average target savings ratios for coal consumption are relatively much higher in all three areas. This shows that coal reduction is mainland China’s most urgent task.
Table 16 Average overall technical efficiency for regions in mainland China during 2000-2003
ID Region Area 2000 2001 2002 2003
01 Beijing E 0.82 0.89 0.93 0.97
02 Tianjin E 0.87 0.90 0.93 0.97
03 Hebei E 1.00 1.00 0.99 0.99
04 Shanxi C 0.54 0.55 0.58 0.63
05 Inner Mongolia C 0.63 0.65 0.67 0.71
06 Liaoning E 0.78 0.70 0.72 0.78
07 Jilin C 0.72 0.76 0.79 0.83
08 Heilongjiang C 0.87 0.89 0.94 1.00 09 Shanghai E 1.00 1.00 1.00 1.00
10 Jiangsu E 1.00 0.97 0.96 0.96
11 Zhejiang E 0.87 0.88 0.93 0.95
12 Anhui C 1.00 1.00 1.00 0.97
13 Fujian E 1.00 1.00 1.00 1.00
14 Jiangxi C 0.98 1.00 1.00 1.00 15 Shandong E 1.00 1.00 1.00 1.00
16 Hennan C 0.96 0.96 0.93 0.97
17 Hubei C 0.87 0.92 0.92 0.95
18 Hunan C 1.00 1.00 1.00 1.00
19 Guangdong E 1.00 1.00 1.00 1.00
20 Guangxi E 0.91 0.92 0.88 0.88
21 Sichuan W 0.75 0.74 0.77 0.81
22 Guizhou W 0.65 0.64 0.65 0.62
23 Yunnan W 0.76 0.74 0.74 0.75
24 Shaanxi W 0.54 0.57 0.58 0.63
25 Gansu W 0.51 0.53 0.53 0.53
26 Qinghai W 0.45 0.47 0.52 0.51
27 Xinjiang W 0.79 0.79 0.81 0.89
Table 17 Average annual target savings ratios for regions in mainland China during
Note: Abatement ratios are in percentage terms.
4.2 Waste of Mainland China
4.2.1 Regional Abatements Ratios for Three Industrial Wastes
This part shows the regional target abatements ratios of three industrial wastes during 2000-2003, and the average regional target abatements ratios of three industrial wastes during 2000-2003. Figures show the trends of regional target abatements ratios in the three major areas of mainland China.
4.2.1.1 Abatements Ratios for Solid Wastes Produced
As Table 18, the east area has three regions with solid waste produced abatements ratios always higher than 30% throughout the research period: Hebei (03), Liaoning (06), and Guangxi (20). The central area has eight regions with solid waste produced target abatements ratios always higher than 30%: Shanxi (04), Inner Mongolia (05), Jilin (07), Heilongjiang (08), Anhui (12), Jiangxi(14), Hennan (16), and Hubei (17), especially Shanxi (04), Inner Mongolia (05), Anhui (12), and Hubei (17) with target abatements ratios higher than 60%. The west area has five areas with solid waste produced target abatements ratios always higher than 30%: Guizhou (22), Yunnan (23), Shaanxi (24), Gansu (25) and Qinghai (26), especially Guizhou (22) and Yunnan (23), with target abatements ratios higher than 80%.
Table 18 and Figure 6 describe the 2000-2003 average solid waste produced abatements ratios in each area. The solid waste produced abatements ratios of the east area is the lowest, while the central and west areas have similarly high abatements ratios.
With respect to solid wastes produced, the east, central, and west areas are the most, medium, and least efficient, respectively. The central area at one time had higher target abatements ratios than the west area.
Table 18 Actual produced and target abatements ratios of industrial solid wastes for regions in mainland China during 2000-2003
2000 2001 2002 2003
ID Region Area Actual
Produced
2. Abatement ratios are in percentage terms.
Among the three wastes, the solid waste produced target abatements ratios are generally the highest, implying that solid wastes produced may be the most critical task for controlling waste in mainland China.
Solid wastes
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00
2000 2001 2002 2003 year
%
E C W
Figure 6 The average target solid waste abatements ratios in the three major areas of mainland China
Table 19 shows the Mann-Whitney test on target solid waste abatements ratios for three major areas in mainland China during 2000-2003. It presents that the target abatements ratios of west area is significantly more than east area, and which of the central area is significantly more than east area, but which of west area is not significantly more than central area. Summary of target solid waste abatement for three areas, east area is most efficient, and west area and central area are the most inefficient.
Table 19 Mann-Whitney test on target solid waste abatements ratios for three major
Note: ***represents significance at the 0.01 level; **represents significance at the 0.05 level;
*represents significance at the 0.1 level.
4.2.1.2 Abatements Ratios for Waste Water Discharged
The east area has three regions with waste water discharged abatements ratios always higher than 30% throughout the research period: Liaoning (06), Jiangsu (10), and Zhejiang (11). The central area has one region with waste water discharged
target abatements ratios always higher than 30%: Hubei (17). The west area has three areas with waste water discharged target abatements ratios always higher than 30%: Sichuan (21), Shaanxi (24), and Gansu (25).
Table 20 and Figure 7 show the 2000-2003 average waste water discharged abatements ratios in each area. The east, central, and west areas have the lowest, medium, and highest waste water discharged abatements ratios, respectively. With respect to waste water discharged, the east, central, and west areas are the most, medium, and least efficient, respectively.
Although the waste water discharged abatement ranking of the east and central areas are always at the lowest and medium, their average target abatements ratios have been increasing during the research period. However, the average target abatements ratios of the west area always stayed above 30% during the 2000-2003 period, showing no significant improvement at all.
Table 21 shows the Mann-Whitney test on target waste water abatements ratios for three major areas in mainland China during 2000-2003. It presents that the target abatements ratios of the central area is not significantly more than east area, and which of west area is not still not significantly more than central area, but which of west area is always significantly more than east area. Summary of target solid waste abatement for three areas, east area is most efficient, and west area is the most inefficient.
Table 20 Actual discharged and target abatements ratios of industrial waste water for regions in mainland China during 2000-2003
2000 2001 2002 2003
ID Region Area Actual
Discharged 04 Shanxi C 32406 41.01 31093 40.87 30777 32.56 30929 27.16 05 Inner Mongolia C 21844 26.29 20960 25.12 22737 22.11 23577 17.00 06 Liaoning E 109044 42.07 99505 40.43 92001 38.54 89186 40.64 07 Jilin C 37386 40.65 35574 39.06 34783 23.61 31365 19.22 14 Jiangxi C 41956 38.53 41507 22.23 46119 25.08 50135 38.31 15 Shandong E 110324 10.23 115233 14.72 106668 0.00 115933 0.00 16 Hennan C 109210 24.29 110152 24.40 114431 24.93 114224 32.58 17 Hubei C 106733 44.40 97714 43.80 98481 32.41 96498 38.84 18 Hunan C 112563 0.00 107175 0.00 111788 0.00 124132 59.17 19 Guangdong E 114055 0.00 112812 0.00 145236 0.00 148867 0.00 20 Guangxi E 81571 23.38 90512 33.69 97126 34.92 119291 74.95 21 Sichuan W 201323 63.50 196134 58.26 197510 56.85 202133 47.27 22 Guizhou W 20598 33.97 20812 35.82 17117 25.59 16815 24.76 23 Yunnan W 35117 20.62 32713 23.84 33696 21.19 34655 24.71 24 Shaanxi W 30903 37.55 28634 35.76 30496 32.34 33526 34.17 25 Gansu W 23795 47.66 20722 45.39 19677 36.66 20899 38.57 Notes: 1. Actual discharged are in 10,000 tons.
2. Abatement ratios are in percentage terms.
Table 21 Mann-Whitney test on target waste water abatements ratios for three major
Note: *represents significance at the 0.1 level; **represents significance at the 0.05 level.
Waste water
0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00
2000 2001 2002 2003 year
%
E C W
Figure 7 The average target waste water discharged abatements ratios in the three major areas of mainland China
4.2.1.3 Abatements Ratios for Waste Gas Emission
The east area has three regions with waste gas emission abatements ratios always higher than 30% throughout the research period: Hebei (03), Liaoning (06), and Guangxi (20). The central area has five regions with waste gas emission target abatements ratios always higher than 30%: Shanxi (04), Inner Mongolia (05), Jilin (07), Anhui (12), and Hennan (16), especially Shanxi (04) and Inner Mongolia (05) with target abatements ratios higher than 60%. The west area has six regions with waste gas emission target abatements ratios always higher than 30%: Sichuan (21), Guizhou (22), Yunnan (23), Shaanxi (24), Gansu (25), and Qinghai (26), especially Gansu (25) and Qinghai (26) with target abatements ratios higher than 50%.
Table 22 Actual emissions and target abatements ratios of industrial waste gas for regions in mainland China during 2000-2003
2000 2001 2002 2003
ID Region Area Actual
Emission 06 Liaoning E 9432 44.08 10042 40.43 10462 39.55 12774 40.64 07 Jilin C 3082 48.95 3237 43.51 3516 35.86 3869 34.52 08 Heilongjiang C 4326 35.04 4617 31.36 4628 8.73 4841 11.12 09 Shanghai E 5755 0.00 6964 0.00 7440 0.00 7799 0.00 10 Jiangsu E 9078 14.63 13344 27.41 14286 23.59 14633 20.45 11 Zhejiang E 6509 16.54 8530 25.46 8532 13.61 10432 21.23
2. Abatement ratios are in percentage terms.
Table 22 and Figure 8 show the 2000-2003 average waste gas emission abatements ratios in each area. Rankings for these average waste gas emission abatements ratios are stable throughout the research period. The east, central, and west areas have the lowest, medium, and highest waste gas emission abatements ratios, respectively. With respect to waste gas emission, the east, central, and west areas are the most, medium, and least efficient, respectively.
Waste gas
0.00 10.00 20.00 30.00 40.00 50.00 60.00
2000 2001 2002 2003 year
%
E C W
Figure 8 The average target waste gas emission abatements ratios in the three major areas of mainland China
During the 2000-2003 period, the average waste gas emission target abatements ratios in the central area was increasing, while on the contrary, in the east area and west area they were decreasing. However, the average target waste gas emission abatements ratios of the central area and west area stayed above and then around 30%
during the 2000-2003 period, showing no significant improvement.
Table 23 shows the Mann-Whitney test on target waste gas abatements ratios for three major areas in mainland China during 2000-2003.
Table 23 Mann-Whitney test on target waste gas abatements ratios for three major areas
Note: *represents significance at the 0.1 level; **represents significance at the 0.05 level.
It presents that the target abatements ratios of west area is significantly more than east area, and which of the central area is significantly more than east area, but which of west area is still not significantly more than central area. Summary of target waste gas abatement for three areas, east area is most efficient, and west area and central area are the most inefficient.
4.2.2 Benchmark for Three Industrial Wastes Abatements Ratios
From Tables 18, 20, 22 and 24, the three regions in mainland China are found to always have zero target abatements ratios of three wastes, implying that their three wastes are efficient during the research period. These regions are all located in the east area: Beijing (01), Shanghai (09) and Guangdong (19). It shows that the above three regions are the benchmark for the industrial three waste abatements ratios.
Hunan (18) in the central area has zero target abatements ratios for the three wastes until 2002.
4.2.3 General Comments on Three Industrial Wastes Abatements
From Table 25, the four-year average target abatements ratios of solid wastes produced for the east, central, and west areas are respectively 29.18%, 67.07%, and 68.82%. The four-year average target abatements ratios of waste water discharged for the east, central, and west areas are respectively 19.30%, 26.56%, and 32.16%.
The four-year average target abatements ratios of waste gas emission for the east, central, and west areas are respectively 21.28%, 38.79%, and 46.74%.
Comparing to those cases of waste water and gas, the average target abatements ratios for solid wastes are relatively much higher in all three areas. This shows that solid waste reduction is also mainland China’s most urgent task.
Table 24 Average overall technical efficiency for regions in mainland China during 2000-2003
ID Region Area 2000 2001 2002 2003
01 Beijing E 1.00 1.00 1.00 1.00 02 Tianjin E 1.00 0.98 0.99 1.00
03 Hebei E 0.93 0.90 0.88 0.88
04 Shanxi C 0.59 0.59 0.67 0.73
05 Inner Mongolia C 0.74 0.75 0.78 0.83 06 Liaoning E 0.58 0.60 0.62 0.59
07 Jilin C 0.69 0.74 0.76 0.81
08 Heilongjiang C 0.82 0.83 0.92 0.92 09 Shanghai E 1.00 1.00 1.00 1.00 10 Jiangsu E 0.85 0.84 0.86 0.87 11 Zhejiang E 0.84 0.85 0.86 0.88
12 Anhui C 0.77 0.77 0.77 0.75
13 Fujian E 1.00 1.00 1.00 1.00
14 Jiangxi C 0.73 0.79 0.79 0.75 15 Shandong E 0.90 0.85 1.00 1.00
16 Hennan C 0.76 0.76 0.75 0.75
17 Hubei C 0.78 0.78 0.75 0.72
18 Hunan C 1.00 1.00 1.00 0.95
19 Guangdong E 1.00 1.00 1.00 1.00 20 Guangxi E 0.85 0.86 0.87 0.85 21 Sichuan W 0.67 0.70 0.66 0.70 22 Guizhou W 0.66 0.64 0.74 0.75
23 Yunnan W 0.79 0.76 0.79 0.75
24 Shaanxi W 0.62 0.64 0.68 0.66
25 Gansu W 0.52 0.55 0.63 0.61
26 Qinghai W 0.63 0.65 0.78 0.77 27 Xinjiang W 0.96 0.85 0.88 0.88
Table 25 Average annual target abatements ratios for regions in mainland China during
Note: Abatement ratios are in percentage terms.
Our empirical findings of this part show that most regions with high target coal savings ratios also have high target solid wastes abatements ratios and high target waste gas abatements ratios. Because burning coal will produce the solid wastes and air pollution directly. Some regions with high target gasoline savings ratios also have high target waste gas abatements ratios.
We also find that the central and west areas have similar critical problems on the three wastes. The east area still has most of the efficient regions with respect to the three wastes, and it also has the lowest average target abatements ratios for the three wastes. The least-developed west area always has the highest average target abatements ratios for the three wastes. This implies that the most-developed east area is using environmental goods more efficiently. The last-developed areas may produce and mine using a lower grade of equipment that is highly polluting, but still they cannot afford better equipment to treat the pollutants. Better environmental performance has been accompanied with economic achievement for the more-developed east area than for the central and west areas.
Chapter 5 Concluding Remarks
In summary, this thesis employs a DEA model to analyze the targets of energy saving and waste reducing for regions in mainland China. DEA is a non-parametric method using linear programming to construct a non-parametric piecewise frontier over the data for an efficiency measurement. In order to pursue overall technical efficiency with energy and waste, this study adopts the CRS DEA model. The relative OTE for regions in mainland China from period 2000-2003 is calculated at the same time.
Furthermore, both output-oriented and input-oriented CRS DEA models generate exactly the same efficiency scores, target inputs, and target outputs.
Coal, gasoline, and electricity are the three major types of energy that are inputs of industrial production. Solid waste, waste water and waste gas are the three major types of waste that are by-products of industrial production. Finding out the efficient energy savings ratios and waste abatements ratios according to the feasible Chinese production frontier is hence an important academic and policy issue. Therefore, we analyze the target abatement of individual input (including the three main types of energy and the three major types of waste) for regions in mainland China.
This thesis’s main contribution is to create an input abatement index which different from the traditional DEA model. Therefore, this thesis computes the efficient
This thesis’s main contribution is to create an input abatement index which different from the traditional DEA model. Therefore, this thesis computes the efficient