ANALYSING TECHNICAL EFFICIENCY AND PROFITABILITY IN CHINA'S LOGISTICS SECTOR: AN EMPIRICAL ASSESSMENT

Abstract

The logistics industry in China has become a crucial pillar of the country’s economic framework, supporting growth and enabling the smooth movement of goods across the nation. With rapid industrialization and urbanization, the logistics sector has expanded significantly, with energy consumption playing a critical role in transportation, warehousing, and distribution operations. This study highlights the importance of energy efficiency in China’s logistics sector, particularly in light of fluctuating energy prices and increasing environmental concerns. Using the Data Envelopment Analysis (DEA) approach, this research analyzes the dynamic relationship between energy consumption, logistics system efficiency, and its impact on the profitability of logistics companies in China. The results indicate that improving technical efficiency in energy use can significantly enhance logistics output and company profitability. These findings underscore the need for efficient energy management strategies and supportive energy policies to achieve economic and environmental sustainability in China’s rapidly growing logistics sector.