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Effects of pollution abatement activities on environmental efficiency and productivity: Empirical evidence from the Chinese industrial sector

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  • Masayuki Shimizu

Abstract

Since the 2000s, China has been aggressively involved in controlling industrial pollution, and end‐of‐pipe approaches have certainly reduced pollution emissions. This study aims to measure environmental efficiency and productivity in the Chinese industrial sector and investigate whether pollution abatement activities have a negative impact on environmental efficiency and productivity. Using regional data from 29 provinces from 1997 to 2010, the results show that significant improvements were made in environmental efficiency and productivity in the Eastern region, but not in the Western region. The estimation results after conducting a panel data analysis, however, show that increased pollution abatement activities are associated with a decline in environmental efficiency and productivity. The findings suggest that if China can promote the diffusion of cleaner production technology with the expansion of abatement activities, there is potential for increasing the levels of environmental efficiency and productivity.

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  • Masayuki Shimizu, 2022. "Effects of pollution abatement activities on environmental efficiency and productivity: Empirical evidence from the Chinese industrial sector," Review of Development Economics, Wiley Blackwell, vol. 26(1), pages 484-509, February.
    • Handle: RePEc:bla:rdevec:v:26:y:2022:i:1:p:484-509
    DOI: 10.1111/rode.12820
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    1. Hao, Xiaoli & Wen, Shufang & Xue, Yan & Wu, Haitao & Hao, Yu, 2023. "How to improve environment, resources and economic efficiency in the digital era?," Resources Policy, Elsevier, vol. 80(C).

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