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Understanding the Green Total Factor Productivity of Manufacturing Industry in China: Analysis Based on the Super-SBM Model with Undesirable Outputs

Author

Listed:
  • Xi Zhang

    (School of Economics, Beijing Technology and Business University, Beijing 100048, China)

  • Rui Li

    (University of Chinese Academy of Sciences, Beijing 100190, China)

  • Jinglei Zhang

    (PBC School of Finance, Tsinghua University, Beijing 100083, China)

Abstract

Total factor productivity (TFP) is considered a source of economic growth, and as the constraints of climate change and energy security gradually increase, green total factor productivity (GTFP) is also included in the meaning of the topic. In this study, we combine the super-SBM model with the GML index and include undesirable outputs to measure the GTFP of 26 manufacturing sub-sectors in China from 2004 to 2017. The results show that in the sample period, the GTFP growth rate of China’s manufacturing continues to accelerate, and the driving force is mainly from green technological progress change (GTC), while the green technical efficiency change (GEC) generally declines. After entering the 13th Five-Year Plan period, GEC also began to show a growth trend. The acceleration of green technological progress and the improvement of green technical efficiency jointly drove the GTFP of China’s manufacturing industry to enter a rapid upward trajectory during the 13th Five-Year Plan period, with an average annual growth rate of 5.16%. In addition, different categories of China’s manufacturing industry have begun to develop in a different manner in recent years, which is mainly caused by the difference in the growth rate of green technological progress in the manufacturing industry. Specifically, the GTFP growth rate of equipment and high-tech manufacturing is the highest, followed by consumer goods manufacturing and energy-intensive manufacturing. Accordingly, this paper suggests that the manufacturing industry should further increase investment in R&D, optimize resource allocation, and formulate differentiated policies for different industries, so as to improve the GTFP of the manufacturing industry and promote the green and low-carbon transformation of China’s manufacturing industry.

Suggested Citation

  • Xi Zhang & Rui Li & Jinglei Zhang, 2022. "Understanding the Green Total Factor Productivity of Manufacturing Industry in China: Analysis Based on the Super-SBM Model with Undesirable Outputs," Sustainability, MDPI, vol. 14(15), pages 1-16, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:15:p:9310-:d:875244
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    2. Yongquan Zhao & Ziwei Zhang, 2023. "Distribution of Spatial and Temporal Heterogeneity of Green Total-Factor Productivity in the Chinese Manufacturing Industry, and the Influencing Factors," Sustainability, MDPI, vol. 15(4), pages 1-15, February.

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