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The increasingly high frequency of heavy air pollution in most regions of China signals the urgent need for the transition to an environmentally friendly production performance by socioeconomic sectors for the sake of people's health and sustainable development. Focusing on CO 2 and major air pollutants, this paper presents a comprehensive environmental efficiency index based on evaluating the environmental efficiency of major socioeconomic sectors, including agriculture, power, industry, residential and transportation, at the province level in China in 2010 based on a slack-based measure DEA model with non-separable bad output and weights determined by the coefficient of variation method. In terms of the environment, 5, 16, 6, 7 and 4 provinces operated along the production frontier for the agricultural, power, industrial, residential and transportation sectors, respectively, in China in 2010, whereas Shanxi, Heilongjiang, Ningxia, Hubei and Yunnan showed lowest efficiency correspondingly. The comprehensive environmental efficiency index varied from 0.3863 to 0.9261 for 30 provinces in China, with a nationwide average of 0.6383 in 2010; Shanghai ranked at the top, and Shanxi was last. Regional disparities in environmental efficiency were identified. A more detailed inefficiency decomposition and benchmarking analysis provided insight for understanding the source of comprehensive environmental inefficiency and, more specifically, the reduction potential for CO 2 and air pollutants. Some specific research and policy implications were uncovered from this work. [ABSTRACT FROM AUTHOR]

Abstract: Recently, environmental pollution has attracted a lot of attention domestically and internationally. It is known that energy utilization is a major source of China’s environmental pollution. Measuring environmental efficiency of energy utilization in Chinese provinces first, the paper then offers decision supports for relevant departments in order to achieve sustainable development of energy and environment in China. This research chooses CO2 emission as a substitute variable for environmental effects of energy utilization and puts it into the study framework based on total-factor production theory to measure the environmental efficiency of energy utilization of each province and three major regions. On the basis of the above results this research further measures the cost of environmental regulation for each province. Provincial panel data during the period of 2000–2007 are used to carry out empirical study. The analysis indicates that the environmental efficiency of energy utilization in Chinese provinces varies greatly from each other, meaning that both economic output and CO2 emissions need considerable improvement. In addition, the results of empirical study also show that the environmental efficiency of energy utilization in China is quite low. Therefore, to ensure sustainable development of China’s energy, economy and environment, we should resort to advanced technology as the support to promote the efficient and clean utilization of energy resources. Besides, most Chinese provinces have spent quite a lot on environmental regulation, implying that in these provinces development of the economy and the environment are not in harmony. The contributions of this research are as follows: it constructs the models for measuring environmental efficiency of energy utilization in Chinese provinces; it introduces the idea of “environmental regulation” into research system and measures the environmental regulation cost of each Chinese province. [Copyright &y& Elsevier]