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Changes in environmentally sensitive productivity and technological modernization in China's iron and steel industry in the 1990s

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  • FUJII, HIDEMICHI
  • KANEKO, SHINJI
  • MANAGI, SHUNSUKE

Abstract

Technological modernization is widely believed to contribute positively both to economic development and to environmental and resource conservation, through improvements in productivity and strengthening of business competitiveness. However, this may not always be true, particularly in the short term, as it requires substantial investments and may impose financial burdens on firms undertaking such investments. This study empirically examines the effects of technological modernization in China's iron and steel industry in the 1990s on conventional economic productivity (CEP) and environmentally sensitive productivities (ESPs). We employ a directional distance function that can handle multiple inputs and outputs to compute relative production efficiencies. We apply these models to the data covering 27 iron and steel firms in China between 1990 and 1999 – a period when the Chinese iron and steel industry modernized rapidly. We find that ESPs have continuously improved, even in the period when the CEP declined.

Suggested Citation

  • Fujii, Hidemichi & Kaneko, Shinji & Managi, Shunsuke, 2010. "Changes in environmentally sensitive productivity and technological modernization in China's iron and steel industry in the 1990s," Environment and Development Economics, Cambridge University Press, vol. 15(04), pages 485-504, August.
  • Handle: RePEc:cup:endeec:v:15:y:2010:i:04:p:485-504_00
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    1. repec:kap:jproda:v:47:y:2017:i:3:d:10.1007_s11123-016-0480-4 is not listed on IDEAS
    2. Fujii, Hidemichi & Iwata, Kazuyuki & Kaneko, Shinji & Managi, Shunsuke, 2012. "Corporate environmental and economic performances of Japanese manufacturing firms: Empirical study for sustainable development," MPRA Paper 39564, University Library of Munich, Germany.
    3. Johnstone, Nick & Managi, Shunsuke & Rodríguez, Miguel Cárdenas & Haščič, Ivan & Fujii, Hidemichi & Souchier, Martin, 2017. "Environmental policy design, innovation and efficiency gains in electricity generation," Energy Economics, Elsevier, vol. 63(C), pages 106-115.
    4. Peihao Lai & Minzhe Du & Bing Wang & Ziyue Chen, 2016. "Assessment and Decomposition of Total Factor Energy Efficiency: An Evidence Based on Energy Shadow Price in China," Sustainability, MDPI, Open Access Journal, vol. 8(5), pages 1-23, April.
    5. Fujii, Hidemichi & Managi, Shunsuke, 2015. "Optimal production resource reallocation for CO2 emissions reduction in manufacturing sectors," MPRA Paper 64703, University Library of Munich, Germany.
    6. Shao, Yanmin & Shang, Yan, 2016. "Decisions of OFDI Engagement and Location for Heterogeneous Multinational firms: Evidence from Chinese firms," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 178-187.
    7. Hidemichi Fujii & Jing Cao & Shunsuke Managi, 2015. "Decomposition of Productivity Considering Multi-environmental Pollutants in Chinese Industrial Sector," Review of Development Economics, Wiley Blackwell, vol. 19(1), pages 75-84, February.
    8. Hidemichi Fujii & A. George Assaf & Shunsuke Managi & Roman Matousek, 2016. "Did the financial crisis affect environmental efficiency? evidence from the Japanese manufacturing sector," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(2), pages 159-168, April.
    9. Huijuan Cao & Hidemichi Fujii & Shunsuke Managi, 2015. "A productivity analysis considering environmental pollution and diseases in China," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-19, December.
    10. Chen, Shiyi & Golley, Jane, 2014. "‘Green’ productivity growth in China's industrial economy," Energy Economics, Elsevier, vol. 44(C), pages 89-98.
    11. Carlos Barros & Hidemichi Fujii & Shunsuke Managi, 2015. "How scale and ownership are related to financial performance? A productivity analysis of the Chinese banking sector," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-14, December.
    12. Fujii, Hidemichi & Cao, Jing & Managi, Shunsuke, 2016. "Firm-level environmentally sensitive productivity and innovation in China," Applied Energy, Elsevier, vol. 184(C), pages 915-925.

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