The Dynamic Environmental Performance of Industry in China:
A Data Envelopment Analysis on Subdivided Industries
Abstract: This article improves the analysis frame of dynamic environmental performance based on DEA in Kortelainen(2008) by establishing the frontier of environmental technology with panel data. The main results of the empirical analysis on the 36 industries of China between 2001 and 2007 are as follows: there was inefficiency of environmental technology in industry widely and it wasn’t correlative with its economic development level; the difference of environmental performance among industries was large but it was lessened during these years lightly; as a whole the average environmental performance was improved but some industries’ environmental performance was deteriorated; the improved environmental performance was caused by progress of environmental technology which was Hicks neutral, and the deteriorated environmental performance was caused by eco-efficiency falling. We should improve our industries’ environmental performance through publicizing scientific outlook on development effectively, establishing scientific emission standards for order pollutants, improving incentive mechanism on environmental protection, spreading appropriate technology and enhancing producers’ technology capability. Key Words: Industry; Eco-efficiency; Dynamic Environmental Performance; Panel Data; Data Envelopment Analysis