ABSTRACT
Industrial efficiency is important for the development of regional economic policies. Numerous researchers and analysts have placed undesirable outputs into analytical frameworks to reflect the impact of resource and environmental constraints on industrial efficiency. The industrial efficiency of top five urban agglomerations (TFUA) is proportionate to their economic development, which is consistent with the conclusions of previous research and shows the reliability of the model described by Equation. The spatial difference of industrial efficiency is reflected only within each urban agglomeration but among them. By using the network data envelopment analysis model, considering undesirable outputs, and the industrial data of 2000-2014 from the TFUA, the overall industrial efficiency, industrial production efficiency and pollution governance efficiency are estimated. Industrial inefficiency is decomposed and calculated using inefficiencies, desirable output inefficiencies and undesirable output inefficiencies. The concept of efficiency comes from physics and can be traced to its introduction during the first industrial revolution.
