Carbon productivity growth in China’s transportation industry: empirical analysis using a global Malmquist-Luenberger productivity index based on an endogenous directional distance function

Abstract

In China, transportation is one of the fastest-growing industries for CO2 emissions, so scientifically measuring the carbon total factor productivity growth of this industry could provide accurate guidance to achieve sustainable development. To this end, this study proposes an endogenous directional distance function (DDF) approach using a common directional vector based on satisfaction degree, and then integrates it with the global Malmquist-Luenberger productivity index (GMLPI) to measure the carbon total factor productivity growth. We employ this novel endogenous DDF-based GMLPI approach to evaluate and decompose the carbon total factor productivity growth of China’s 30 provincial-level transportation industries from 2010 to 2020. The empirical results show that the carbon total factor productivity of 14 provinces improved during 2010–2020, and 28 provinces from 2015 to 2020. Efficiency improvement and technological progress have become the joint drivers for the carbon total factor productivity growth. Targeted policy implications are provided.