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Firm-level environmentally sensitive productivity and innovation in China

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  • Fujii, Hidemichi
  • Cao, Jing
  • Managi, Shunsuke

Abstract

This study analyzes productive efficiency in relation to CO2 emissions using a unique dataset of 562 Chinese manufacturing firms for the period from 2005 to 2009. We develop a directional distance function approach to identify technical innovators in the area of CO2 emissions. The results indicate that a large number of technical innovators are observed in the textile, paper, steel, and computer industries. Furthermore, there are clearly different trends in productivity change and corporate performance across industries and provinces. This result implies that policy makers need to consider industrial and regional characteristics to develop effective policies that conserve energy and reduce CO2 emissions.

Suggested Citation

  • Fujii, Hidemichi & Cao, Jing & Managi, Shunsuke, 2016. "Firm-level environmentally sensitive productivity and innovation in China," MPRA Paper 71851, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:71851
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    Cited by:

    1. Jinpeng Fu & Guirong Xiao & Lingling Guo & Chunyou Wu, 2018. "Measuring the Dynamic Efficiency of Regional Industrial Green Transformation in China," Sustainability, MDPI, vol. 10(3), pages 1-19, February.
    2. Wang, Miao & Feng, Chao, 2020. "The impacts of technological gap and scale economy on the low-carbon development of China's industries: An extended decomposition analysis," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    3. You, Jianmin & Zhang, Wei, 2022. "How heterogeneous technological progress promotes industrial structure upgrading and industrial carbon efficiency? Evidence from China's industries," Energy, Elsevier, vol. 247(C).
    4. Ning Zhang & Weijie Zhang, 2020. "Can sustainable operations achieve economic benefit and energy saving for manufacturing industries in China?," Annals of Operations Research, Springer, vol. 290(1), pages 145-168, July.
    5. Fan, Jing-Li & Da, Ya-Bin & Wan, Si-Lai & Zhang, Mian & Cao, Zhe & Wang, Yu & Zhang, Xian, 2019. "Determinants of carbon emissions in ‘Belt and Road initiative’ countries: A production technology perspective," Applied Energy, Elsevier, vol. 239(C), pages 268-279.
    6. Li, Ye & Cui, Qiang, 2017. "Carbon neutral growth from 2020 strategy and airline environmental inefficiency: A Network Range Adjusted Environmental Data Envelopment Analysis," Applied Energy, Elsevier, vol. 199(C), pages 13-24.
    7. Chen, Dengke & Chen, Shiyi & Jin, Hao & Lu, Yulin, 2020. "The impact of energy regulation on energy intensity and energy structure: Firm-level evidence from China," China Economic Review, Elsevier, vol. 59(C).
    8. Xiaoqing Chen & Zaiwu Gong, 2017. "DEA Efficiency of Energy Consumption in China’s Manufacturing Sectors with Environmental Regulation Policy Constraints," Sustainability, MDPI, vol. 9(2), pages 1-19, February.
    9. Zaiwu Gong & Xiaoqing Chen, 2017. "Analysis of Interval Data Envelopment Efficiency Model Considering Different Distribution Characteristics—Based on Environmental Performance Evaluation of the Manufacturing Industry," Sustainability, MDPI, vol. 9(12), pages 1-25, November.
    10. Zhang, Ning & Zhao, Yu & Wang, Na, 2022. "Is China's energy policy effective for power plants? Evidence from the 12th Five-Year Plan energy saving targets," Energy Economics, Elsevier, vol. 112(C).
    11. Xiaobo Shen & Boqiang Lin, 2017. "Total Factor Energy Efficiency of China’s Industrial Sector: A Stochastic Frontier Analysis," Sustainability, MDPI, vol. 9(4), pages 1-17, April.
    12. Philipp R. Steinbrunner, 2022. "Boon or bane? On productivity and environmental regulation," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(3), pages 365-396, July.
    13. Yang, Zhenbing & Fan, Meiting & Shao, Shuai & Yang, Lili, 2017. "Does carbon intensity constraint policy improve industrial green production performance in China? A quasi-DID analysis," Energy Economics, Elsevier, vol. 68(C), pages 271-282.
    14. Consolación Quintana-Rojo & Fernando-Evaristo Callejas-Albiñana & Miguel-Ángel Tarancón & Isabel Martínez-Rodríguez, 2020. "Econometric Studies on the Development of Renewable Energy Sources to Support the European Union 2020–2030 Climate and Energy Framework: A Critical Appraisal," Sustainability, MDPI, vol. 12(12), pages 1-26, June.
    15. Anton Nugent & Dragana Radicic, 2023. "The Impact of Environmental Management on Labour Productivity," Sustainability, MDPI, vol. 15(16), pages 1-16, August.

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    More about this item

    Keywords

    Technical innovator; total factor productivity; technology adoption; CO2 emissions; Chinese manufacturing firm;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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