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Economic growth and the environment in China: an empirical analysis of productivity

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  • Shunsuke Managi
  • Shinji Kaneko

Abstract

China is an economic powerhouse with annual economic growth averaging close to 9% over the last 25 years. However, as a result of this extremely rapid economic growth, the scale and seriousness of its environmental problems are clearly evident. Consequently, a number of environmental problems, including growing energy consumption, heavy reliance on coal and increasing air pollution are threatening China's sustainable future. The principal focus of this paper is to measure total factor productivity within a joint-production model that considers both market and environmental pollution variables and employs unique province-level secondary industry data over the period 1992–2003. The results indicate that although China began implementing new environmental policies in the late 1970s, and although the stringency of these regulations is increasing, there is no short-term positive benefit associated with their implementation. However, some environmental productivity measures, such as wastewater treatment, have exhibited an increase in managerial efficiency.

Suggested Citation

  • Shunsuke Managi & Shinji Kaneko, 2006. "Economic growth and the environment in China: an empirical analysis of productivity," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 6(1), pages 89-133.
  • Handle: RePEc:ids:ijgenv:v:6:y:2006:i:1:p:89-133
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    Citations

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    Cited by:

    1. Yang, Fuxia & Yang, Mian & Nie, Hualin, 2013. "Productivity trends of Chinese regions: A perspective from energy saving and environmental regulations," Applied Energy, Elsevier, vol. 110(C), pages 82-89.
    2. Liu, Guangtian & Wang, Bing & Zhang, Ning, 2016. "A coin has two sides: Which one is driving China’s green TFP growth?," Economic Systems, Elsevier, vol. 40(3), pages 481-498.
    3. Halkos, George & Polemis, Michael, 2016. "Examining the impact of financial development on the environmental Kuznets curve hypothesis," MPRA Paper 75368, University Library of Munich, Germany.
    4. repec:spr:elcore:v:17:y:2017:i:3:d:10.1007_s10660-016-9248-1 is not listed on IDEAS
    5. Jayanthakumaran, Kankesu & Liu, Ying, 2012. "Openness and the Environmental Kuznets Curve: Evidence from China," Economic Modelling, Elsevier, vol. 29(3), pages 566-576.
    6. repec:eee:ecanpo:v:55:y:2017:i:c:p:57-74 is not listed on IDEAS
    7. Jinnan Wu & Nianxin Wang & Zhining Wang, 0. "Impact of information technology capability on financial performance during the period of economic downturn: the case of Chinese listed companies," Electronic Commerce Research, Springer, vol. 0, pages 1-21.
    8. Fan, Meiting & Shao, Shuai & Yang, Lili, 2015. "Combining global Malmquist–Luenberger index and generalized method of moments to investigate industrial total factor CO2 emission performance: A case of Shanghai (China)," Energy Policy, Elsevier, vol. 79(C), pages 189-201.

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