Total-Factor Energy Efficiency of Jiangsu Province Based on DEA

Data envelopment analysis (DEA), based on relative efficiency, is an efficiency evaluation method for the same type of decision-making units (DMU). Using sequence data of 1995-2007 and production function including the stock of knowledge, this paper chooses the VRS DEA model based on the assumption of input orientation to measure annual energy efficiency of Jiangsu in the framework of total-factor energy efficiency. Our major findings are as follows: (1) the energy efficiency in Jiangsu has experienced the process of similar N-shaped and maintained optimization condition after 2001, which means the score of energy efficiency is always 1.0. (2) The energy inefficiency is the result of scale of inefficiency. (3) The redundancy rate of labor is the highest in all input factors, which reached respectively 25.13% and 24.69% in 1995 and 1999.