Analysis of Environmental Production Efficiency and Environmental Total Factor Productivity in China
This paper combines generalized Malmquist index and stochastic frontier model to measure production efficiency, TFP growth and their changes in China over the period from 1995 to 2009 while accounting for factors about environment. The results show that environmental production efficiency can reflect efficiency losses brought by environmental problems and can better display the resource use efficiency differences between provinces. The environmental TFP is usually greater than traditional TFP during the study period, as is closely related to the effectiveness of energy saving and emission reduction in these times. However, due to the fast capital deepening, the contributions to China' s economic growth in both environmental TFP and traditional TFP are not high, and it also causes some problems such as implosion of the provinciallevel technological frontier and increasing difficulty in emission reduction.
Environmental Production EfficiencyEnvironmental Total Factor ProductivityGeneralized Malmquist IndexStochastic Frontier Analysis