| As China’s environmental pollution and resource shortages become more andmore serious, circular economy has been the main issue in those years, whichdraws much attention and is greatly supported by the central government."ThePeople’s Republic of China Circular Economy Promotion Law" also came intoforce in January1,2009.Until now, the concepts of "energy conservation" and"low-carbon economy" that embody the principles of reduction have beenpromoted vigorously in China. Technical efficiency in the economic analysis isway significant, and it is a fantastic tool to measure and compare each region’seconomic growth quality.This article chooses energy consumption, capital and labor as factors ofproduction inputs (using energy consumption as a circular economy indicator toreflect its impact on efficiency), the industrial added value as an output indicator.Based on national inter-provincial data between2005and2008, the author usesboth data envelopment analysis (DEA) and stochastic frontier analysis (SFA)model to study the technology efficiency level and changes in China’s provinces.The results show that the industrial technical efficiency in30provinces hasincreased steadily in recent years, yet the technical efficiency is still very low.Through the aim-improved analysis, it can be concluded that energy waste is moreserious than capital and labor. With the current output unchanged, the averagelevel of energy consumption in national industry can be lowered by28.72%,which means we need to develop circular economy in our industry continuously,especially under the principle of reduction. We also find that international tradehas a more significant impact on enhancing technical efficiency in comparisonwith foreign investment. The coefficient of utilization of industrial solid waste is-0.4972, indicating that circular economy has a significantly positive effect onenhancing the efficiency. Empirical research provides a strong support ondeveloping circular economy, and the author will also discuss the factors andreasons that affect the technical efficiency changes and inter-provincialdifferences in detail. |
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