Abstract

The promotion of industrial environmental efficiency (IEE) has attracted considerable attention from scholars and policymakers. Previous studies have focused on the factors driving IEE without considering the leader-follower relationship between the two stages of IEE and have used aggregated indicators to detect the effect of urbanization on IEE. In this study, we open the “black box” of IEE and regard it as a serial system comprised of the economic development (ED) stage and the environmental governance (EG) stage. We select typical provinces belonging to the ED-oriented regions and EG-oriented regions for our analysis. We quantify IEE by using the slack-based model (SBM), decompose the effect of urbanization into four typical factors and detect the effect of the urbanization-related factors by using a tobit regression model. Next, we compare the effect of the urbanization-related factors in the different regions. The results show that overall, in 2011–2015, IEE in the different regions was low and fluctuating, and it increased in ED-oriented regions while remaining stable in EG-oriented regions. The IEE of the ED-oriented regions was always higher than that of the EG-oriented regions, with the gap increasing over time. The IEE of the two stages varied in each type of region. Urbanization-related factors had different effects on the IEE of the different stages in the two types of region, and the same factor had significantly different effects in different regions.

Highlights

  • Through the process of reform and openness, the industry of China is developing rapidly and is the largest contributor to the economic development of China

  • IEEEG clearly increased in environmental governance (EG)-oriented regions, especially beginning in 2013, while it slowly decreased in economic development (ED)-oriented regions

  • The industrial environmental efficiency (IEE) of ED-oriented regions is significantly dominated by IEEED, while the IEE of EGoriented regions is significantly dominated by IEEEG

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Summary

Introduction

Through the process of reform and openness, the industry of China is developing rapidly and is the largest contributor to the economic development of China. A total of 66.3% of total energy, 95% of coal, and 99% of crude oil are consumed in the industrial sectors. The amount of industrial wastewater discharge reached 18.16 billion tons in 2017, accounting for approximately 23.55% of the total wastewater discharge in China. The extensive development of industry has consumed too much energy and caused serious environmental pollution. China is still in a stage of rapid motorization

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