Analysis of Environmental Regulation and Total Factor Energy Efficiency

This present article proposes a mechanism and mathematical model of environmental regulation and energy efficiency. Then, it analyses the panel data of 30 provinces in China from 2000 to 2012 by using the super-efficiency DEA model. Empirical results show that, in general, environmental regulation can significantly promote the total factor energy efficiency in China, which is an existing reversed transmission mechanism. There are obvious U-structure nonlinear relations between environmental regulation and total factor energy efficiency. Most of the eastern provinces of China are on the right side of the U-structure's inflection point. Therefore, energy efficiency can be improved by promoting environmental regulation. However, the central and western provinces are primarily on the left side or near the U-structure's inflection point. In these regions, environmental regulation does not implement the reversed transmission mechanism. The differences between developed provinces and undeveloped ones contribute to realizing the plight in the development stages of emerging market countries.