DEA Efficiency of Energy Consumption in China's Manufacturing Sectors with Environmental Regulation Policy Constraints

Because overall energy consumption intensity in China's manufacturing industry is extremely high, the study of energy efficiency in that industry, with an analysis of the policy impacts of energy intensity reduction and other key factors, will no doubt improve energy utilization in the industry and stimulate sustainable development within it. This paper uses 2004-2014 panel data of 28 manufacturing industries and a piecewise linear utility function to construct a data envelopment analysis (DEA) model of energy consumption with environmental regulations constraints. We also examine the DEA evaluation of energy efficiency in manufacturing industries. We integrate environmental regulations as qualitative variables into the energy consumption evaluation model to research the coupling effects on energy consumption intensity of energy consumption structure, opening up, environmental regulations, technological progress, and competition within industries. The research shows that energy efficiency policy intensity is not the major effect on the development of low or moderate energy-consumption industries, whereas low-energy-efficiency policy is very favorable for the development of high energy-consumption industries.