Application of the novel three-stage DEA model to evaluate total-factor energy efficiency: A case study based on 30 provinces and 8 comprehensive economic zones of China

The carbon emissions issues majorly caused by energy consumption have become a public concern around the globe. As a major energy consumer and carbon emitter in the world, it is imperative for China to improve energy efficiency. Moreover, energy efficiency evaluation can provide evidence for policy formulating. This study measures and analyzes the total-factor energy efficiencies of China's provincial and comprehensive economic zones during 2008–2017 based on the novel three-stage Data Exchange Agreement (DEA)model, which is upgraded by introducing the super-efficiency Slacks-Based Measurement (SBM) model with the undesirable output into the traditional three-stage DEA model. The empirical results illustrate that environmental regulation, economic development, and technical innovation are significantly affect total-factor energy efficiencies. The total-factor energy efficiencies and their rankings of different provinces and eight comprehensive economic zones in China change significantly after removing the environmental variables and statistical noise. The energy efficiencies of eight comprehensive economic zones show a decreasing trend from “the east, the central to the west”, and the gap between them are also widening. This study provides policy implications and empirical evidence for China to improve energy efficiency, reduce carbon emissions and consequently, achieve the green sustainable development goals.