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Currently, the iron and steel industry (ISI) accounts for more than 16% of China's total energy consumption. Improving energy efficiency (EE) and promoting energy savings in this industry have vital significance for China's further sustainable development. Using provincial panel data from 2000 to 2014 and meta-frontier data envelopment analysis (DEA), this paper investigates EE and the energy-saving potential (EP) of China's ISI by considering regional technology heterogeneities. The results show that (1) from 2001 to 2014, EE in China's ISI achieved significant improvement. Technological progress is the most powerful driving factor, while the declines in scale efficiency and pure technical efficiency are two obstructive factors; (2) the sources of energy inefficiency (EI) show distinct spatial difference characteristics. EI in the eastern region mainly stems from scale inefficiency and pure technical inefficiency, while that in the central and western regions stems from three aspects of scale inefficiency, pure technical inefficiency, and technology gap; and (3) there is considerable EP in China's ISI, which represents nearly 80% of ISI's current total energy consumption. Because the sources of EP vary across regions, the focus of future work for China's regional ISI should also vary. [ABSTRACT FROM AUTHOR]

Because industrial sectors in China are energy-intensive, improving energy efficiency and promoting energy savings in these sectors are of great importance for the further sustainable development of China’s economy. Using a proposed meta-frontier data envelopment analysis (DEA), this paper analyzes the total-factor energy efficiency and energy savings potential in China’s provincial industrial sectors for the years 2000–2014 from three perspectives, namely, the technology gap, management, and scale. The results indicate that (1) driven by technological progress, energy efficiency during the sample period was greatly improved, though the expansion of technology gaps between regions and the decline in scale efficiency represented two significant handicaps; (2) the current energy efficiency in China’s industrial sectors remains extremely low, indicating that there is considerable potential for energy efficiency improvement and energy savings; and (3) the sources of energy inefficiency and energy savings potential in China’s industrial sectors exhibit spatially distinct characteristics. Accordingly, it is determined that most of China’s eastern provinces should focus on improving scale and management efficiency, whereas most of its central and western provinces should concentrate on three factors: narrowing the regional technology gap, improving management efficiency, and optimizing the industrial scale. [ABSTRACT FROM AUTHOR]