Atmospheric environmental productivity across the provinces of China: Joint decomposition of range adjusted measure and Luenberger productivity indicator

This paper adopts data envelopment analysis, namely the range adjusted measure (RAM) which is based on the naditive structure, to measure the technical efficiency and productivity change. Note that we distinguish among energy and non-energy inputs in the analysis. The Luenberger productivity indicator is decomposed for the provinces of China for the period of 2006-2015. Specifically, we seek to identify the key directions for energy conservation and emission reduction by analyzing the environmental productivity change decomposition. The results show that sulfur dioxide and carbon dioxide emissions from primary energy consumption along with primary energy consumption are important variables contributing to atmospheric environmental inefficiency in Chinese provinces. Furthermore, static efficiency scores associated with energy consumption and atmospheric emission (sulfur dioxide, nitrogen oxides and carbon dioxide emissions) are lower for Hebei, Shandong, Henan and Shanxi in North China, whereas Beijing, Tianjin, Shanghai, Guangdong and Fujian show higher values of this kind of efficiency. Atmospheric emissions contribute to the growth in the atmospheric environmental productivity to a higher extent if compared to energy consumption. Therefore, Chinese energy policy should address the environmental regulation of energy consumption.