The Environmental-adjusted Energy Efficiency of China’s Construction Industry: A Three-stage Undesirable SBM-DEA Model

Abstract Construction industry is a pillar industry of China's national economy but its problems of high energy consumption, high pollution and low energy efficiency is increasingly prominent. The study on the energy efficiency of construction industry is of great significance for improving development quality and achieving the goal of energy saving and emission reduction. In this paper, a three-stage undesirable SBM-DEA model was employed to measure the energy efficiency in construction industry during 2005 -2016. The CO2 directly emitted by the construction industry and indirectly emitted in the production of building materials were used as the undesirable output and the three-stage framework was employed to analyze and eliminate the influence of external environment. The empirical results showed that low efficiency of management in the construction industry is an important factor leading to the low level of energy efficiency in China’s construction industry. For the energy efficiency value before and after adjustment, the “high-high” provinces has made full use of the superior external environment by their high management level, while the “high-low” provinces needs to fully realize the potential in promoting energy efficiency of its external environment by improving its own management of construction industry. On the contrary, the “low-high” provinces need to improve the external environment to ease its restrictions on the level of management in the construction industry. Environmental factors and management level should be considered simultaneously for different provinces to improve energy efficiency of construction industry.