An Empirical Study of China’s Energy Intensive Industries’ Growth Based on Environmental Total Factor Productivity*

Shen Keting 1, 2 and Gong Jianjian
1School of Economics, Zhejiang Gongshang University, Hangzhou, China
2Center for Studies of Modern Business, Zhejiang Gongshang University, Hangzhou, China

 
Abstract: Using directional distance function and nonparametric data envelopment analysis, this paper estimates the environmental total factor productivity (ETFP) of energy-intensive industries in China from 1995 to 2010, and performs an empirical analysis on factors affecting ETFP growth after studying the differences of energy-intensive industries’ ETFP by industries and provinces. The findings include the following: energy-intensive industries’ ETFP growth is mainly driven by technical progress; China, at its current development stage, still has the potential to raise the productivity of its energy intensive industries. By estimating the provincial data, we find that the ETFP growth of different provinces converge at different levels. Further market liberalization, increased FDI flows and reductions in energy intensity will help to improve each province’s ETFP growth. In addition, increasing investment in energy saving and emissions reduction and improving corporate environmental management capacity can help to reduce a company’s short-term cost of complying with environmental regulations.
Key words: energy-intensive industries, environmental pollution, environmental total factor productivity (TEFP), directional distance function

¥0.01加入购物车