Comprehensive assessment of Chinese technology innovation and carbon emission efficiency: an enhanced two-stage data envelopment analysis approach

Technological innovation and a low-carbon economy are of great significance for the high-quality development of China’s industrial sector. The article aims to assess the overall efficiency of Chinese technology innovation and carbon emissions. A comprehensive theoretical framework is developed to evaluate this relationship, employing a novel two-stage DEA approach that integrates non-cooperative and cooperative models, considering undesirable outputs and Variable Return to Scale (VRS) assumptions. The methodology is applied to assess 29 provinces in China. The results indicate a misalignment between technology innovation, energy consumption and carbon emission trajectories, revealing overall inefficiency and posing challenges to achieving net zero emissions. This research underscores China’s commitment to prioritize technological and energy advancements for CO2 reduction, particularly in light of its renewed dedication at COP28, emphasizing the critical role of innovation in bridging the emission gap and meeting ambitious climate goals. Additionally, the outcome of this study provides clear policy implications for enhancing the comprehensive efficiencies of both the technology innovation process and carbon emissions process in China.