CO2 emissions and technical efficiency of logistics sector: An empirical research from China

The aim of this paper is to examine the correlation between CO2 emissions and technical efficiency of logistics sector. In doing so, a one-step Stochastic Frontier Analysis (SFA) approach is employed based on panel data from 25 provincial logistics sector in China. Besides CO2 emissions, rail mileage, highway mileage, inland waterway mileage and the progress degree of provincial marketization in China are also assumed as inefficient factors to technical efficiency. The result of empirical research shows that the coefficients of four assumed inefficient factors pass significant test except the inland waterway mileage. The most important insight is that this research measures the coefficient of CO2 emissions to technical efficiency of logistics sector, i.e. reducing 1% CO2 emissions leads to 0.231% enhancement of technical efficiency of logistics sector. Meantime, facilitating the progress of marketization and expanding mileage of rail and highway system can also improve technical efficiency of logistics sector.