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Carbon Sequestration Total Factor Productivity Growth and Decomposition: A Case of the Yangtze River Economic Belt of China

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  • Guangming Rao

    () (Research Centre for Economy of the Upper Reaches of the Yangtze River, Chongqing Technology and Business University, Chongqing 400067, China
    School of Economics and Business Administration, Chongqing University, Chongqing 400044, China
    School of Business Administration, Xingjiang University of Finance and Economics, XingJiang 830026, China)

  • Bin Su

    () (Energy Studies Institute, National University of Singapore, 21 Lower Kent Ridge Rd 119077, Singapore 119077, Singapore)

  • Jinlian Li

    () (Research Centre for Economy of the Upper Reaches of the Yangtze River, Chongqing Technology and Business University, Chongqing 400067, China)

  • Yong Wang

    () (School of Economics and Business Administration, Chongqing University, Chongqing 400044, China)

  • Yanhua Zhou

    () (School of Business Administration, Xingjiang University of Finance and Economics, XingJiang 830026, China)

  • Zhaolin Wang

    () (Research Centre for Economy of the Upper Reaches of the Yangtze River, Chongqing Technology and Business University, Chongqing 400067, China)

Abstract

To find out whether carbon sequestration is both effective at mitigating climate change and promoting economic growth, in this paper, by adopting a stochastic frontier panel model with translog production function, carbon sequestration is incorporated into endogenous variables to establish estimation model of carbon sequestration total factor productivity (CSTFP) and examine CSTFP growth and its drivers decomposition of the Yangtze River Economic Belt (YREB) of China in three estimations. The result shows that, (1) compared to traditional TFP growth, CSTFP growth in YREB is improved by 26.74 percentages (from −26.55% to 0.20%), contributed by three positive drivers of technical efficiency change (28.59%), technological progress change (18.55%), and scale efficiency change (3.99%); (2) different CSTFP growth exists in three watershed segments of YREB, which firstly is the upper reaches (0.62%), then the lower reaches (0.11%) and the middle reaches (−0.14%). Improved CSTFP growth owes to carbon sequestration’s harmonious symbiosis where natural ecosystems and human activities are naturally blended while insufficient synergies are bottleneck for promotion of CSTFP growth in YREB. Related policy suggestions are provided in the end. The proposed analysis framework is efficient to disclose CSTFP growth in YREB, and can also be applied to similar analysis on CSTFP in regions and extended to multi-country/region analysis.

Suggested Citation

  • Guangming Rao & Bin Su & Jinlian Li & Yong Wang & Yanhua Zhou & Zhaolin Wang, 2019. "Carbon Sequestration Total Factor Productivity Growth and Decomposition: A Case of the Yangtze River Economic Belt of China," Sustainability, MDPI, Open Access Journal, vol. 11(23), pages 1-28, November.
  • Handle: RePEc:gam:jsusta:v:11:y:2019:i:23:p:6809-:d:292720
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    References listed on IDEAS

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    More about this item

    Keywords

    carbon sequestration total factor productivity (CSTFP); stochastic frontier analysis (SFA); watershed segment analysis; drivers decomposition analysis; Yangtze River economic belt (YREB);

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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