Efficiency evaluation of Chinese provincial industry systems: A dynamic two-stage slacks-based measure with shared inputs

How to control industrial air pollution is an urgent policy problem to be solved. Through efficiency evaluation, we can test the implementation effect of the policy, to provide decision support for industrial development. China's provincial industrial system consists of production stage and emission reduction stage. Taking the number of industrial waste gas treatment facilities as a carry-over variable (i.e., connecting multiple periods), this study establishes a dynamic two-stage, slacks-based measure data envelopment analysis (SBM-DEA) model considering shared inputs to evaluate the operating efficiency of China's provincial industrial systems from 2011 to 2019. The results show that (1) The industrial waste gas treatment facilities (carry-over variables) have a significant impact on the overall efficiency and stage efficiency of the industrial system; (2) The average overall efficiency and average stage efficiency of the provincial industrial system have improved during 2011-2019, but they are still inefficient, and the inefficiency has certain geographical characteristics; (3) During the 12th Five Year Plan period (2011-2015), the average efficiency of the emission reduction stage was higher than that of the production stage, but the situation reversed during the 13th Five Year Plan period (2016-2019). This study is of great significance to policy makers of industrial air pollution control.