Estimating the regional eco-efficiency in China based on bootstrapping by-production technologies

Abstract By-production (BP) technologies, modeled as an intersection of intended production technologies (production efficiency) and nature’s residual-generation technologies (environmental efficiency), was applied in this paper to estimate the regional eco-efficiency in China during 2008–2017. This model is firstly formulated by directional-distance-function (DDF) and Fare-Grosskopf-Lovell (FGL), and then modified by bootstrap sensitivity analysis. The empirical results demonstrate that: (i) BP technologies based on the multiple production relations tend to produce lower efficiency scores than conventional model based on a single production relation. Moreover, BP-FGL can be a better choice for the measurement of efficiency index; (ii) The low economic development level is not necessarily associated with low environmental efficiency. Most of the eastern provinces had superior production efficiencies while inferior environmental efficiencies compared with inland provinces; (iii) At the regional level, a greater improvement in environmental efficiency than in production efficiency can be observed, and the gaps on the latter had widened over time among these regions; (iv) The great efficiency gaps between production efficiency and environmental efficiency appeared in the North Coast and Northwest, which are disadvantage to the inter-regional coordinated development. The results indicate that promoting production performance is crucial to improve the eco-efficiency for sustainable development in China.