IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v247y2015i3p1003-1012.html
   My bibliography  Save this article

Analysis on China's eco-innovations: Regulation context, intertemporal change and regional differences

Author

Listed:
  • Yang, Fuxia
  • Yang, Mian

Abstract

Eco-innovation is recognized as a determinant of success or failure of environmental protection efforts in the long run. This paper attempts to examine China's eco-innovation gains in response to the energy saving and emissions reduction (ESER) policy enforced during 2006–2010. We first construct an integrated analysis framework to evaluate the changes of energy and environmental performance used as the proxy of eco-innovation, and then the intertemporal change of China's eco-innovation gains as well as the regional differences is investigated. The results indicate that China had accelerated its process of eco-innovations during 2006–2010 when a series of ESER policies were enforced. The developments and wide adoptions of advanced energy saving and environmentally friendly technologies serve as the primary driving forces, while upgrading management skills and organizational designs contribute relatively little. Furthermore, the realizing paths of cross-region eco-innovations in China are obviously discrepant.

Suggested Citation

  • Yang, Fuxia & Yang, Mian, 2015. "Analysis on China's eco-innovations: Regulation context, intertemporal change and regional differences," European Journal of Operational Research, Elsevier, vol. 247(3), pages 1003-1012.
  • Handle: RePEc:eee:ejores:v:247:y:2015:i:3:p:1003-1012
    DOI: 10.1016/j.ejor.2015.07.029
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221715006621
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2003. "Chapter 11 Technological change and the environment," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 11, pages 461-516, Elsevier.
    2. Picazo-Tadeo, Andrés J. & Castillo-Giménez, Juana & Beltrán-Esteve, Mercedes, 2014. "An intertemporal approach to measuring environmental performance with directional distance functions: Greenhouse gas emissions in the European Union," Ecological Economics, Elsevier, vol. 100(C), pages 173-182.
    3. Lukas, Elmar & Welling, Andreas, 2014. "Timing and eco(nomic) efficiency of climate-friendly investments in supply chains," European Journal of Operational Research, Elsevier, vol. 233(2), pages 448-457.
    4. Triguero, Angela & Moreno-Mondéjar, Lourdes & Davia, María A., 2013. "Drivers of different types of eco-innovation in European SMEs," Ecological Economics, Elsevier, vol. 92(C), pages 25-33.
    5. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    6. Picazo-Tadeo, Andrés J. & Beltrán-Esteve, Mercedes & Gómez-Limón, José A., 2012. "Assessing eco-efficiency with directional distance functions," European Journal of Operational Research, Elsevier, vol. 220(3), pages 798-809.
    7. Newell, Richard G. & Jaffe, Adam B. & Stavins, Robert N., 2006. "The effects of economic and policy incentives on carbon mitigation technologies," Energy Economics, Elsevier, vol. 28(5-6), pages 563-578, November.
    8. Chen, Jinjin, 2011. "China's experiment on the differential electricity pricing policy and the struggle for energy conservation," Energy Policy, Elsevier, vol. 39(9), pages 5076-5085, September.
    9. Marin, Giovanni, 2014. "Do eco-innovations harm productivity growth through crowding out? Results of an extended CDM model for Italy," Research Policy, Elsevier, vol. 43(2), pages 301-317.
    10. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 2008. "The Measurement of Productive Efficiency and Productivity Growth," OUP Catalogue, Oxford University Press, number 9780195183528.
    11. Nick Johnstone & Ivan Haščič & David Popp, 2010. "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 133-155, January.
    12. Rolf Färe & Shawna Grosskopf & Carl A Pasurka, Jr., 2001. "Accounting for Air Pollution Emissions in Measures of State Manufacturing Productivity Growth," Journal of Regional Science, Wiley Blackwell, vol. 41(3), pages 381-409, August.
    13. Yang, Mian & Yang, Fu-Xia & Chen, Xing-Peng, 2011. "Effects of substituting energy with capital on China's aggregated energy and environmental efficiency," Energy Policy, Elsevier, vol. 39(10), pages 6065-6072, October.
    14. Picazo-Tadeo, Andres J. & Reig-Martinez, Ernest & Hernandez-Sancho, Francesc, 2005. "Directional distance functions and environmental regulation," Resource and Energy Economics, Elsevier, vol. 27(2), pages 131-142, June.
    15. Demirel, Pelin & Kesidou, Effie, 2011. "Stimulating different types of eco-innovation in the UK: Government policies and firm motivations," Ecological Economics, Elsevier, vol. 70(8), pages 1546-1557, June.
    16. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    17. Adler, Nicole & Yazhemsky, Ekaterina, 2010. "Improving discrimination in data envelopment analysis: PCA-DEA or variable reduction," European Journal of Operational Research, Elsevier, vol. 202(1), pages 273-284, April.
    18. Yuan, Jiahai & Kang, Junjie & Yu, Cong & Hu, Zhaoguang, 2011. "Energy conservation and emissions reduction in China—Progress and prospective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4334-4347.
    19. Perino, Grischa & Requate, Till, 2012. "Does more stringent environmental regulation induce or reduce technology adoption? When the rate of technology adoption is inverted U-shaped," Journal of Environmental Economics and Management, Elsevier, vol. 64(3), pages 456-467.
    20. Mahlberg, Bernhard & Luptacik, Mikulas, 2014. "Eco-efficiency and eco-productivity change over time in a multisectoral economic system," European Journal of Operational Research, Elsevier, vol. 234(3), pages 885-897.
    21. Oh, Dong-hyun & Heshmati, Almas, 2010. "A sequential Malmquist-Luenberger productivity index: Environmentally sensitive productivity growth considering the progressive nature of technology," Energy Economics, Elsevier, vol. 32(6), pages 1345-1355, November.
    22. Popp, David, 2006. "International innovation and diffusion of air pollution control technologies: the effects of NOX and SO2 regulation in the US, Japan, and Germany," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 46-71, January.
    23. David Popp, 2010. "Innovation and Climate Policy," NBER Working Papers 15673, National Bureau of Economic Research, Inc.
    24. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2005. "A tale of two market failures: Technology and environmental policy," Ecological Economics, Elsevier, vol. 54(2-3), pages 164-174, August.
    25. Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1999. "The Induced Innovation Hypothesis and Energy-Saving Technological Change," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 941-975.
    26. David Popp, 2010. "Innovation and Climate Policy," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 275-298, October.
    27. Kemp, René & Pontoglio, Serena, 2011. "The innovation effects of environmental policy instruments — A typical case of the blind men and the elephant?," Ecological Economics, Elsevier, vol. 72(C), pages 28-36.
    28. Chambers, Robert G. & Fare, Rolf & Grosskopf, Shawna, 1996. "Productivity Growth in APEC Countries," Working Papers 197843, University of Maryland, Department of Agricultural and Resource Economics.
    29. Briec, Walter & Peypoch, Nicolas & Ratsimbanierana, Hermann, 2011. "Productivity growth and biased technological change in hydroelectric dams," Energy Economics, Elsevier, vol. 33(5), pages 853-858, September.
    30. Mahlberg, Bernhard & Sahoo, Biresh K., 2011. "Radial and non-radial decompositions of Luenberger productivity indicator with an illustrative application," International Journal of Production Economics, Elsevier, vol. 131(2), pages 721-726, June.
    31. Victoria Shestalova, 2003. "Sequential Malmquist Indices of Productivity Growth: An Application to OECD Industrial Activities," Journal of Productivity Analysis, Springer, vol. 19(2), pages 211-226, April.
    32. Lori Bennear & Robert Stavins, 2007. "Second-best theory and the use of multiple policy instruments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 111-129, May.
    33. Noailly, Joëlle, 2012. "Improving the energy efficiency of buildings: The impact of environmental policy on technological innovation," Energy Economics, Elsevier, vol. 34(3), pages 795-806.
    34. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
    35. Walter Briec & K. Kerstens, 2009. "Infeasibilities and directional distance functions: with application to the determinateness of the luenberger productivity indicator," Post-Print hal-00372560, HAL.
    36. Geng, Jing & Lu, Yonglong & Wang, Tieyu & Giesy, John P. & Chen, Chunli, 2010. "Effects of energy conservation in major energy-intensive industrial sectors on emissions of polychlorinated dibenzo-p-dioxins and polychlorinated dibenzofurans in China," Energy Policy, Elsevier, vol. 38(5), pages 2346-2356, May.
    37. Zhou, P. & Ang, B.W. & Wang, H., 2012. "Energy and CO2 emission performance in electricity generation: A non-radial directional distance function approach," European Journal of Operational Research, Elsevier, vol. 221(3), pages 625-635.
    38. Adam Jaffe & Richard Newell & Robert Stavins, 2002. "Environmental Policy and Technological Change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 41-70, June.
    39. Dyson, R. G. & Allen, R. & Camanho, A. S. & Podinovski, V. V. & Sarrico, C. S. & Shale, E. A., 2001. "Pitfalls and protocols in DEA," European Journal of Operational Research, Elsevier, vol. 132(2), pages 245-259, July.
    40. Kumar, Surender & Managi, Shunsuke, 2009. "Energy price-induced and exogenous technological change: Assessing the economic and environmental outcomes," Resource and Energy Economics, Elsevier, vol. 31(4), pages 334-353, November.
    41. Kesidou, Effie & Demirel, Pelin, 2012. "On the drivers of eco-innovations: Empirical evidence from the UK," Research Policy, Elsevier, vol. 41(5), pages 862-870.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    2. Bi, Kexin & Huang, Ping & Wang, Xiangxiang, 2016. "Innovation performance and influencing factors of low-carbon technological innovation under the global value chain: A case of Chinese manufacturing industry," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 275-284.
    3. Xiafei Chen & Zhiying Liu & Chaoliang Ma, 2017. "Chinese innovation-driving factors: regional structure, innovation effect, and economic development—empirical research based on panel data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 43-68, July.
    4. Sanni, Maruf, 2018. "Drivers of eco-innovation in the manufacturing sector of Nigeria," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 303-314.
    5. Wang, Ke & Wei, Yi-Ming, 2016. "Sources of energy productivity change in China during 1997–2012: A decomposition analysis based on the Luenberger productivity indicator," Energy Economics, Elsevier, vol. 54(C), pages 50-59.
    6. Sueyoshi, Toshiyuki & Goto, Mika & Wang, Derek, 2017. "Malmquist index measurement for sustainability enhancement in Chinese municipalities and provinces," Energy Economics, Elsevier, vol. 67(C), pages 554-571.
    7. Sueyoshi, Toshiyuki & Yuan, Yan, 2017. "Social sustainability measured by intermediate approach for DEA environmental assessment: Chinese regional planning for economic development and pollution prevention," Energy Economics, Elsevier, vol. 66(C), pages 154-166.
    8. Lei, Ming & Yin, Zihan & Yu, Xiaowen & Deng, Shijie, 2017. "Carbon-weighted economic development performance and driving force analysis: Evidence from China," Energy Policy, Elsevier, vol. 111(C), pages 179-192.
    9. Juan David González-Ruiz & Sergio Botero-Botero & Eduardo Duque-Grisales, 2018. "Financial Eco-Innovation as a Mechanism for Fostering the Development of Sustainable Infrastructure Systems," Sustainability, MDPI, Open Access Journal, vol. 10(12), pages 1-19, November.
    10. Wu, Tao & Zhang, Ning & Gui, Lin & Wu, Wenjie, 2018. "Sustainable endogenous growth model of multiple regions: Reconciling OR and economic perspectives," European Journal of Operational Research, Elsevier, vol. 269(1), pages 218-226.
    11. Kiani Mavi, Reza & Saen, Reza Farzipoor & Goh, Mark, 2019. "Joint analysis of eco-efficiency and eco-innovation with common weights in two-stage network DEA: A big data approach," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 553-562.
    12. Yang, Mian & Yang, Fuxia & Sun, Chuanwang, 2018. "Factor market distortion correction, resource reallocation and potential productivity gains: An empirical study on China's heavy industry sector," Energy Economics, Elsevier, vol. 69(C), pages 270-279.
    13. Dewick, Paul & Maytorena-Sanchez, Eunice & Winch, Graham, 2019. "Regulation and regenerative eco-innovation: the case of extracted materials in the UK," Ecological Economics, Elsevier, vol. 160(C), pages 38-51.
    14. Wang, H. & Zhou, P. & Xie, Bai-Chen & Zhang, N., 2019. "Assessing drivers of CO2 emissions in China's electricity sector: A metafrontier production-theoretical decomposition analysis," European Journal of Operational Research, Elsevier, vol. 275(3), pages 1096-1107.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:247:y:2015:i:3:p:1003-1012. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/eor .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.