The Empirical Analysis of Circular Economy Development Efficiency in Jiangsu Province

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1 Available online at Energy Procedia 5 (11) IACEED1 The Empirical Analysis of Circular Economy Development Efficiency in Jiangsu Province Pingping Xiong a,b, Yaoguo Dang b, Wuyong Qian b* a College of Mathematics and Physics, Naning University of Information cience and Technology, Naning 144,China b College of Economics and Management, Naning University of Aeronautics and Astronautics, Naning 116, China Abstract For the evaluation problem of circular economy development efficiency, we take the labour, resources and capital as input elements of circular economy development and take economic growth, social development; industrial "three wastes" discharge treatment compliance rate and the comprehensive utilization rate as output to construct the efficiency evaluation index system of circular economy development. Then we build the DEA model, with which we analyze develop efficient situation of circular economy of Jiangsu Province in and calculate the relative efficiency each year. From the view of technical effectiveness and scale validity we study the development situation in , point out the development problems in recycling process, and give the corresponding countermeasures and suggestions for policy-makers in guiding the development of circular economy and making the relevant policies to provide a scientific theory. 11 Published by Elsevier Ltd. Open access under CC BY-NC-ND license. election andpeer-review underresponsibility of RIUD Keywords: circular economy; evaluation index; DEA model; efficiency evaluation 1. Introduction Circular economy is an economy development mode whose basic characteristic is resources recycling. And it is an ecological transformation to traditional economy [1]. At present, the domestic scholars make researches mainly on theory basis, discipline characteristic, research methods, concept, operation mechanism and conditions for implementing of circular economy [-5].Yu Liying (5) makes an evaluation of circular economy development level in hanghai by using the linear weighted method [6]. * Corresponding author. Tel.: address:xpp815@163.com. This work is supported by National Natural cience Foundation () and the oft cience Foundation Item of Jiangsu Province (BR165) and Ministry of Education Key Proect of National Educational cience Planning(DFA915) Published by Elsevier Ltd. doi:1.116/.egypro Open access under CC BY-NC-ND license.

2 Pingping Xiong et al. / Energy Procedia 5 (11) Wang hu (6) makes an evaluation of circular economy development level in Jiangsu by calculating target layer composite index by weighed summation [7]. Li Lulu (5) makes an evaluation of the third industry development level of circular economy in Jiangsu by using the weighted function method [8]. By using analytic hierarchy process (AHP) method, Wang Chen (6) evaluates the industrial circular economy development status in Jiangsu [9]. Wen Yongun (9) makes an evaluation of the relative effectiveness of 17 cities agricultural circular economy development level in handong [1]. Based on the current research on circular economy development efficiency by DEA method, this paper evaluates development efficiency, technical efficiency and scale returns of circular economy development in Jiangsu for nearly a decade, to find the main reason why diversities in different areas of Jiangsu when circular economy operates. ome suggestions can be put forward for relevant government departments.. The C R and BC model of DEA method C R and BC models are chosen to analyze the comprehensive efficiency, technical efficiency, scale efficiency and scale returns status of industries. The dual programming model (1) of C R is: min n s. t. X X 1 I n D (1) C R Y Y 1, 1,,, n, X is the input of the th decision making unit, Y is the output of the th decision making unit. Make a combination proportion of the th decision making unit for the new constructed valid UMU groups. n is the number of decision making unit DMU. and are slack variables, respectively represent input redundancy and output insufficiency. is the valid value of decision making unit, i.e. relative efficiency input related to output. is the combination proportion of the th decision making unit when some DMU transform to a new valid DMU. By introducing the convexity assumptions to C n R model, that is, adding constraint conditions: 1. We can get BC model (): min n s. t. X X 1 n Y Y I D BC 1 n 1 1, 1,,, n, 1 ()

3 1734 Pingping Xiong et al. / Energy Procedia 5 (11) Empirical analysis of circular economy development efficiency of Jiangsu Province 3.1. The selection of input-output index of circular economy The index cannot be so relative to the number of the decision-making units, which is due to the characteristic of DEA model, otherwise the DEA model cannot distinguish decision-making units effectively. The circular economic system mainly take labours resources and capital as the input factors, by reducing quantity, reusing and making resources promotes highly efficiency using and circular using of resources, with the aim of getting maximal economic output, as more highly efficiency circular using as possible and minimal environment pollution. From the perspective of input, the input factors of circular economy should be considered in three parts, labour input, resources input and capital input. For the labour input, the total quantity of employed population can express its input intensity. For the resources input, we take a consideration mainly in energy. Amount of energy consumption can reflect the situation of resources using and input. For the capital input, the fixed assets investment can reflects the intensity of capital input of the society in circular economic development. From the perspective of output, the output of circular economic development shows as economic growth, social progress, improvement of comprehensive utilization of solid waste and reduction of environment pollution. Because of restriction to the number of index, we select two indexes, GDP amount and product output of three kinds of wastes comprehensive utilization, to generally reflect the output of circular economic development. GDP amount can reflect the economic development, and the improvement of GDP amount shows economy a more growth. In considering the environmental pollution and its comprehensive utilization issues of the industrial waste gas, waste water, solid waste, we uniformly use product output of three kinds of wastes comprehensive utilization to combine the three indexes, industrial waste gas disposal, industrial wastewater treatment compliance rate and comprehensive utilization of industrial solid waste. The product output of three kinds of wastes comprehensive utilization can effectively reflect the situation of industrial three kinds of wastes disposal and comprehensive use. 3.. Analysis on input-output efficiency of circular economic development in Jiangsu Province (1)Analysis on overall efficiency of circular economic development in Jiangsu Province For evaluating overall input-output efficiency of circular economic development in Jiangsu for 1 years, we select as DMUs. We can get redundant input items, lack of key outputs and overall efficiency (as follows in table1) by C R model using input and output indicators data of circular economy in Jiangsu Province from 1999 to 8 (got from tatistical Yearbook of Jiangsu Province). T able 1 T he redundant item of input lack of key output i in k C R model and general effectiveness year Overall efficiency General effectiveness invalid invalid 1 1 effective 1 Effective invalid invalid invalid invalid 7 1 Effective 8 1 Effective

4 Pingping Xiong et al. / Energy Procedia 5 (11) ) Effectiveness of comprehensive We can get that DEA effective DMUs are DMU3, DMU4, DMU9, DMU1, and non-dea effective DMUs are DMU1, DMU, DMU5, DMU6, DMU7 and DM U8. That s, the circular economic development in Jiangsu Province is effective in 1- and 7-8. They are not only technical efficient, but also scale s effective. The input and output configuration in these four years of circular economic development in Jiangsu Province have the best state. ) Proection analysis For the non-decision-making DMU which is ineffective to DEA, we can make use of proection analysis from a technical point to turn it into one that is effective to DEA. As a result, we can get the target value of the input indicator after further improvements. Therefore it will provide reference for improving the future development efficiency of circular economy of Jiangsu province. Proection results are shown in Table and Table 3. Table The proection analysis results of input indicators Input indicators employed population (ten thousand) Actual value Improved value energy consumption amount (ten thousand tons of standard coal) Actual value Improved value fixed assets investment (billion) Actual value Improved value T able 3 T he proection analysis results of output indicators Output indicator product output of three kinds of wastes comprehensive utilization (billion) Actual value Improved value From table and table 3, we see that in the year 1999, and during 3-6, input elements had not been fully utilized as labor, resource, and capital investment are all redundant. The gradual rationalization of inputs allocation is absolutely reflected the increasing development efficiency of circular economy of Jiangsu Province. Factors of labor, resources and capital input are all fully rational used, which indicates that the circular economy in Jiangsu Province has entered a good development trend. ()The technical efficiency and scale efficiency analysis of circular economy in Jiangsu Province The technical efficiency, scale efficiency and the technical effectiveness, scale efficiency and scale earnings of the circular economy in Jiangsu Province during are shown in Table 4. Table 4 Technical effectiveness, scale effectiveness and returns to scale year technical efficiency technical effectiveness scale efficiency scale effectiveness n 1 returns to scale effective.9746 invalid.893 ascending 1 effective.995 invalid.93 ascending 1 1 effective 1 effective 1 constant 1 effective 1 effective 1 constant invalid.961 invalid.966 ascending 4 1 effective.976 invalid.9654 ascending 5 1 effective.9449 invalid.936 ascending 6 1 effective.9934 invalid.998 ascending 7 1 effective 1 effective 1 constant 8 1 effective 1 effective 1 constant

5 1736 Pingping Xiong et al. / Energy Procedia 5 (11) From Table 4, we can see that in Jiangsu Province 9 years technology are valid, while the year 3 is not. During two periods of 1- and 7-8 the scale development of circular economy in Jiangsu Province are valid while the scale merit remains the same, indicating that the development of circular economy in Jiangsu Province was on a stage of constant returns to scale. 4. Conclusions and uggestions (1) In Jiangsu Province there were years that the development of circular economy were not valid to DEA because of the lack of product output of three kinds of wastes comprehensive utilization as well as insufficient use of input factors such as labor, water and energy. Therefore, it is in need to improve the utilization of input factors and output productivity of output indicators. From in Jiangsu Province 9 years were technically valid except for 3, and for scale efficiency, it was valid only during two periods of 1- and 7-8 while the other 6 years invalid. ()In the future work of circular economy we will try to enhance the utilization of human, water and energy, minimize unnecessary waste of resources, optimize the industrial structure, accelerate the construction of energy saving. For high energy and water consumption and high pollution factory or enterprise, we need to conduct timely to give appropriate adustments and introduction of high-tech machinery and equipment for production, which will finally improve resource utilization of the various departments and enterprises and reduce waste of resources. What is more important, we need to improve the utilization of input factors of those enterprises with high water and energy consumption to fully use resources. References [1] P. Peng, D. Ding. The system analysis of circular economy. Journal of ystems cience, 6, 14 (4):7-7. [] Z.H. Xie. Reader for Circular Economy [M]. Beiing: China Environmental cience Press, 5. [3] Z.Q. Li, J.G. Qi. Circular Economy Theory and Practice. The Journal of Quantitative & T echnical Economics, 6, 3 (9,): [4] Z.J. Feng. The paradigm research of circular economy. China oft cience, 6, 188 (8):1-14. [5] G.H. Cao, J.G. Qi. The research on techno-economic paradigm and policy of circular economy. The Journal of Quantitative & T echnical Economics, 6, 5-9. [6] L.Y. Yu, Z. J. Feng. Design of evaluation indicator system of circular economy. China oft cience, 5 (1), [7]. Wang, X. J. Huang, Y. Cheng. On evaluation regional cycling economy: A case study of Jiangsu Province. Journal of Jiangxi Agricultural University, 6, 5(1), [8] L.L. Li, X.J. Huang, Z.K. hi. Comprehensive evaluation of circular economic development for tertiary industry in Jiangsu Province. ichuan Environment, 5, 5 (1), [9] C. Wang, X.J. Huang. On the evaluation and diagnosis of obstacle for circular industrial economic in Jiangsu Province. Industrial Engineering and Management, 6 (), [1] Y.J. Wen. The development evaluation of agricultural circular economy based on super efficiency DEA: A case study of handong Province. Productivity Research, 9(), 1-3.