Abstract
China has achieved significant progress in terms of economic and social developments since implementation of reform and open policy in 1978. However, the rapid speed of economic growth in China has also resulted in high energy consumption and serious environmental problems, which hindering the sustainability of China's economic growth. This paper provides a framework for measuring eco-efficiency with CO2 emissions in Chinese manufacturing industries. We introduce a global Malmquist-Luenberger productivity index (GMLPI) that can handle undesirable factors within Data Envelopment Analysis (DEA). This study suggested after regulations imposed by the Chinese government, in the last stage of the analysis, i.e. during 2011–2012, the contemporaneous frontier shifts towards the global technology frontier in the direction of more desirable outputs and less undesirable outputs, i.e. producing less CO2 emissions, but the GMLPI drops slightly. This is an indication that the Chinese government needs to implement more policy regulations in order to maintain productivity index while reducing CO2 emissions.
Highlights
China has achieved significant progress in terms of economic and social developments since implementation of reform and open policy in 1978
The rapid speed of economic growth in China has resulted in high energy consumption and serious environmental problems, which hindering the sustainability of China's economic growth
China announces 12th five-year plan intended to establish a “green, lowcarbon development concept”, which states that in 2015 China will increase the proportion of non-fossil fuels in energy generation to 11.4%, reduce energy consumption per unit of gross domestic product (GDP) by 16%, and reduce CO2 emissions per unit of GDP by 17% from the levels in 2010, especially in manufacturing industries, as the industrial sector contributes most of carbon emissions in China
Summary
China has achieved significant progress in terms of economic and social developments since implementation of reform and open policy in 1978. Chinese government has realized the importance of energy conservation and prevention of the climate changes for sustainable development of China's economy To address this issue, China announces 12th five-year plan intended to establish a “green, lowcarbon development concept”, which states that in 2015 China will increase the proportion of non-fossil fuels in energy generation to 11.4%, reduce energy consumption per unit of GDP by 16%, and reduce CO2 emissions per unit of GDP by 17% from the levels in 2010, especially in manufacturing industries, as the industrial sector contributes most of carbon emissions in China. We employ a global MalmquisteLuenberger productivity index (GMLPI) based on Data Envelopment Analysis (DEA) with selected inputs (asset, labour, and energy consumption) and outputs (gross industrial output and CO2 emissions) to investigate the components of GMLPI of these two-digit level manufacturing industries in China. Literature review and the development status of Chinese manufacturing industries
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