Understanding the role of the government in promoting various sustainability sub-systems: An analysis based on new parallel-series network data envelopment analysis models.

Sustainability has been a global consensus for the governments worldwide to address serious environmental issues. However, there is a lack of data envelopment analysis (DEA) studies evaluating the performance of government in promoting various sustainability sub-systems. To do this evaluation work, our study proposes new parallel-series network DEA models with alternative network structures of incorporating intermediate products. Particularly, this study develops a new methodological framework to evaluate various inefficiency sources. The framework contains an extended method of network meta/group frontier approach and a new concept of efficiency Foster-Greer-Thorbecke indicator. Empirically, this study considers the case of Chinese government-sustainability system from 2010 to 2017. Such work cannot be found in the existing studies. The main findings are summarized as follows. First, China has succeeded in realizing an overall improved efficiency during the examined periods. The importance of various divisions changes over time. Second, the occurrence of method heterogeneity and significant linkage inefficiency implies that the modelers should incorporate intermediate products in a well-suited way. Finally, inland provinces show higher technology gap inefficiency as for economy division. To improve the performance, inland provinces should promote their human capital and adopt advanced technology. This paper proposes new parallel-series network DEA models with alternative network structures of incorporating intermediate products. Particularly, this study proposes a unified framework to analyze the relationship between network structures and inefficiency sources through the use of meta/group-frontier approach. To identify the main technology diffusion that maybe further cause the inefficiency value, this study applies the FGT indicators to the productivity and efficiency field for the first time. The FGT indicators can be used to explore the structure of technology inequality and identify barriers to technology diffusion. [Display omitted] • We propose a new approach for modelling the parallel-series network structure. • This study applies new frontier framework to identify sources of inefficiency. • There has been growing trends in Chinese government-sustainability system. • Managerial inefficiency had a negative annual growth rate of −6.01%. • Inland provinces showed higher technology gap inefficiency for economy division. [ABSTRACT FROM AUTHOR]