Data envelopment analysis can be applied to measure the productivity of multiple input and output decision-making units. In addition, the data envelopment analysis-based Malmquist productivity index can be used as a tool for measuring the productivity change during different time periods. In this paper, we use an input-oriented model to measure the energy consumption productivity change from 1999 to 2008 of fourteen industry sectors in China as decision-making units. The results show that there are only four sectors that experienced effective energy consumption throughout the whole reference period. It also shows that these sectors always lie on the efficiency frontier of energy consumption as benchmarks. The other ten sectors experienced inefficiency in some two-year time periods and the productivity changes were not steady. The data envelopment analysis-based Malmquist productivity index provides a good way to measure the energy consumption and can give China's policy makers the information to promote their strategy of sustainable development. 1. Introduction In the nearly three decades since the implementation of the reform and opening-up policy in China, the annual average growth of gross domestic product (GDP) has been about 9.5%, and in the first decade of the 21st century this number has risen to 10%. Even in 2009, under the recession in the global economy, GDP still achieved 33.5353 trillion Yuan, with a growth of 8.7% (China Statistical Yearbook, 2009). In 2010, China’s GDP has achieved 39.7983 trillion Yuan, a growth of 10.3%. After 30 years of sustained and rapid economic growth, China has created an economic miracle and replaced Japan as the second largest economy. On the other hand, China’s development has many drawbacks, especially the conflict between people and the environment, such as the contamination of groundwater, carbon emissions, and high energy consumption [1]. Consequently, in recent decades, there has been increasing concern about how to achieve sustainable economic growth with lower energy consumption, and it has become the main problem of development in China [2]. In the 11th 5-year-plan time period, China drafted a strategy of sustainable development. To measure the productivity of economic growth comprehensively, the energy consumption per 10,000 Yuan of GDP is used to monitor the situation in different industries. In 2009 and 2010, energy consumption declined by 2.2% and 4.01%, respectively, per 10,000 Yuan GDP (China Statistical Yearbook, 2009, 2010). Considering the rising trend of China’s economic development, the
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