The Measurement of Environmental Performance and Economic Performance Based on Catastrophe Theory: Case Studies of Thermal Power Industry and Steel Industry in China

Abstract

We employed catastrophe theory and entropy method to measure and compare the environmental performance and economic performance of 40 listed companies from the thermal power and steel industries in China, to explore their relationship. The results showed that the environmental performance of the steel industry was less than that of the thermal power industry, but their economic performance was similar. This means that steel industry has had lower resource use efficiency and more pollutant emission, and has a larger potential to saving resources, energy and environment pollution. Both the correlation analysis and regression analysis indicated that there existed a significant positive relationship between the environmental performance and economic performance of the steel industry and thermal power industry in China. This means that it is very possible to gain win-win situation of these two performances, if the listed companies tend to make advanced production and environment protection activities come into a benevolent cycle, by means of technology upgrading and transformation.