A new intermediate network data envelopment analysis model for evaluating China's sustainability.

The existing studies on network data envelopment analysis (DEA) generally adopt radial or non-radial approaches to capture internal structures of production systems. To our knowledge, however, no study has utilized the intermediate approach to construct network DEA models. To fill the research gap, this study proposes a new intermediate network DEA model, by combining the intermediate approach with network DEA. Our new model has several methodological advantages. In addition, sustainability involves a three-stage system (i.e., economic growth, environmental protection and health promotion). Towards the holistic system, quite limited studies have evaluated the performance. Following this research line, our study proposes a new methodological framework consisting of intermediate network DEA, rank sum test, Gini coefficient and decomposition analysis. By adopting this framework, this study examines multi-dimensional efficiency measures, evaluates technology inequality measures and identifies technology diffusion barriers. Empirically, the current study considers the sustainability system of Chinese provinces from 2009 to 2017. The main findings are as follows. First, China has succeeded in realizing a general improvement in overall efficiency scores. Second, significant differences have been statistically confirmed among three stages. Third, convergent trends have been confirmed across stage efficiency measures. Finally, cross-group Gini coefficient accounts for the largest part in explaining technology inequality, where the stage of environmental protection plays an important role. • We add health promotion to the system of sustainability. • We propose a new intermediate network data envelopment analysis model. • Empirically, we consider the case of Chinese provinces from 2009 to 2017. • China experiences an improvement in overall efficiency scores. • But there is growing technology inequality across Chinese provinces. [ABSTRACT FROM AUTHOR]