Effects Of Technical Change Research Articles

Spatio-Temporal Evolution and Drivers of Carbon Emission Efficiency in China’s Iron and Steel Industry

Improving the carbon emission efficiency (CEE) of the iron and steel industry (ISI) is crucial for China to achieve the goal of carbon peak and carbon neutrality. This study employed the undesirable SBM and Dagum Gini coefficient to measure the ISI’s CEE and analyzed the spatial heterogeneity among three regions of China. This study also used the Tobit model to clarify the influencing factors. The conclusions show that (1) the CEE in eastern provinces is the highest, the central ones rank second, while the western ones rank the worst; the promoting effect of Technical Change is greater than that of Efficiency Change. (2) ISI’s CEE shows a positive spatial correlation and an apparent spatial heterogeneity. The CEE gap between the regions contributes most to the CEE difference among provinces. The regional CEE gap within the western region is the largest, with a maximum difference of 0.520 in the Dagum Gini coefficient. Furthermore, the total CEE gap shows a narrowing trend from 2009 to 2020, with the Dagum Gini coefficient decreasing from 0.414 in 2009 to 0.357 in 2020. (3) Industrial structure, enterprise scale, foreign direct investment, and technology level positively correlate with ISI’s CEE; the marginal impacts are 0.6711, 0.1203, 0.0572, and 3.5191, respectively. While energy intensity, environmental regulation, and product structure negatively correlate with it, the marginal impacts are 0.0178, 1.4673, and 0.2452, respectively.

Industrial collaborative agglomeration and green economic efficiency—Based on the intermediary effect of technical change

AbstractIndustry upgrading and structure transformation are important methods for the green and sustainable development. This paper utilizes urban panel data from China spanning the years 2009–2022 to investigate the impact of manufacturing and producer services collaborative agglomeration on green economy efficiency. Additionally, it examines the mediating effect of three modes of technical change: domestic technological stock, international technology transfer, and innovation absorptive capacity. The key findings are summarized as follows: (1) The impact of Industrial collaborative agglomeration (ICA) on green economy efficiency follows a U‐shaped curve relationship, when the degree of ICA is below the inflection point (1.4022), it negatively affects green economy efficiency. However, when the degree surpasses that point, it demonstrates a positive impact. (2) Domestic technological stock and international technology transfer act as mediating variables between ICA and green economy efficiency. Advancements in domestic technology innovation and increased international technology transfer contribute to a positive effect of ICA on green economic efficiency.

Technology Transfer in Global Value Chains

Global value chains create opportunities for North-South technology diffusion. This paper studies technology transfer in value chains when contracts are incomplete and input production technologies are imperfectly excludable. It introduces a new taxonomy of value chains based on whether the headquarters firm benefits from imitation of its supplier’s technology. In inclusive value chains, where imitation is beneficial, the headquarters firm promotes technology diffusion. But in exclusive value chains headquarters seek to limit supplier imitation. The paper analyzes how this distinction affects the returns to offshoring, the welfare effects of technical change, and the social efficiency of knowledge sharing. (JEL F16, J23, J24, J31)

Revisiting the effects of labour, capital and scale-augmenting technological progress on steady-state output

The effects of technical change may not exclusively be labour-augmenting, if it is assumed that linear homogeneity or balanced growth is not applicable. This study identified these effects on the steady-state output growth from labour, capital and scale-augmenting technological progress. The findings imply that a drop in investment-goods prices accelerates output growth but to a lesser extent than capital growth, and increasing (decreasing) returns to scale (IRS/DRS) will lead to faster (slower) per-capita output growth, but the effect is free from constant returns to scale (CRS). It was also found that a higher output elasticity of capital can be beneficial to output growth and that a substantial labour supply is conducive to higher income per capita under IRS but will reduce it if DRS are present, but again, CRS does not occur. Differentiating between labour and capital augmentations in empirical research is challenging, as a direct estimation of the impacts of technical change on output growth is impossible. Thus, an indirect estimation was conducted to measure these impacts as a Solow residual.

Low-carbon development in China's transportation sector: Multidimensional characteristics and policy implications

Although low-carbon development of transportation sector is crucial for global deep decarbonization, the multidimensional characteristics (e.g., inequality, complex network and efficiency-related drivers) carbon intensity (CI) in the sector at sub-national level is still lacking in-depth evaluation for an emerging economy in particular. Here, using social network analysis, inequality decomposition and production-theoretical decomposition analysis with a focus on regional heterogeneity, the study comprehensively investigated the complex network, inequality and novel drivers related to efficiency and technological change of CI for transportation sectors across 30 provinces in China over 1997–2019. We found that first, the strict spatial correlation structure of CI in the transportation sector was gradually broken and the inter-provincial correlation were enhanced. Second, the inequality of CI declined where gasoline, diesel oil, kerosene and raw coal were the main contributors. Third, the potential carbon factor mainly promoted the reduction of CI while the impact of potential energy intensity exhibited an "inverted U″ trend over the period. Forth, the group technical change effects of energy usage and CO2 emission first promoted the decline of CI and then inhibited it. The study highlights the importance of the multidimensional characteristics in the transportation sector when formulating CI-related policies according to the local conditions.

Spatiotemporal patterns and drivers of carbon emissions from municipal solid waste treatment in China

Reducing carbon emissions from municipal solid waste (MSW) treatment is non-negligible for China to meet its “carbon peaking and carbon neutrality” targets. It is critical to objectively evaluate the spatiotemporal patterns and drivers of carbon emissions from MSW treatment. This study estimates the carbon emissions from MSW treatment across 30 Chinese provinces from 2011 to 2020. The joint approach LMDI-PDA model is further used to refine the impact of policy on carbon emission changes from technical and efficiency perspectives, while considering the socio-economic factors. The results showed that carbon emissions from MSW treatment grew significantly until peaking at 202.05Mt CO2e in 2017 and then stabilized, finally dropping to 165.10 Mt CO2e in 2020 due to the impact of COVID-19. Compared with the “12th Five-Year Plan” period, the MSW emissions intensity declined significantly during the “13th Five-Year Plan” period, indicating the effective implementation of waste emission control measures. Furthermore, the slowdown in the growth of national emissions was primarily driven by technological advances in waste treatment. Technical efficiency change effect, MSW generation intensity effect, economic scale effect, and population scale effect impeded national emissions decline. Since the performance of various drivers varied greatly in different provinces, a cluster analysis was conducted to provide policy recommendations in provinces with similar characteristics. Both the methods and results of this study can provide better decision-making support for national and provincial carbon emissions control policies targeting MSW treatment.

Technical Change and Superstar Effects: Evidence from the Rollout of Television

Technical change that extends market scale can generate winner-take-all dynamics, with large income growth among top earners. I test this “superstar model” in the entertainer labor market, where the historic rollout of television creates a natural experiment in scale-related technological change. The resulting inequality changes are consistent with superstar theory: the launch of a local TV station skews the entertainer wage distribution sharply to the right, with the biggest impact at the very top of the distribution, while negatively impacting workers below the star level. The findings provide evidence of superstar effects and distinguish such effects from popular alternative models. (JEL D31, J31, J44, L82, L88, O33)

Capital-augmenting technical change in the context of untapped automation opportunities

I explore the effects of capital-augmenting technical change (CATC) in a task-based production setting where untapped automation opportunities exist. I contribute to the literature by showing analytically that CATC is a convenient modeling approach to automation, of which the labor market implications match the empirical literature. In my setting, CATC lowers the labor share of income even in the face of strong capital–labor complementarity. The intuitive explanation for this result is that the standard effect of CATC is more than fully offset by a contraction in the set of non-automated tasks, executed by labor. Furthermore, I show that CATC increases the wage rate unambiguously.

The effects of structural and technical change on China’s industrial CO2 emissions pathways under uncertainty

ABSTRACT The industrialization process in China has resulted in the fast growth of the country’s energy consumption and CO2 emissions. Examining the effects of industrial structural change on the emissions pathways in the mid-term future would help advance understanding of how industrial policy choices affect the fulfillment of the strategic climate targets of emissions peaking and carbon neutrality. This study couples index decomposition analysis (IDA) with an additive nonparametric regression model to project the possible emissions pathways with different industrial structures. It develops a set of scenarios following the storylines of shared socioeconomic pathways (SSPs) to examine these effects in an uncertain environment towards 2040. The results show that structural change has played an increasing role in curbing carbon emissions of China’s industrial sectors since 2000. The CO2 emissions reductions attributable to this effect were 686 million tons (Mton CO2) between 2000 and 2013, and these contributions to emission mitigation rose to 798 Mton between 2014 and 2019. The scenario results suggest that the aggregated effect of energy efficiency and structure upgrades will decrease emissions by 43% in 2040 relative to the level in 2019 in the ideal case. Regardless of the uncertainties in scenario settings, heavy industry will continue to dominate China’s industrial emissions through 2040. Nevertheless, a significant structural change with an increased share of high-tech industries, such as information and communication technology, could lead to more than a 30% reduction in emissions compared to cases with more minor changes in this sub-sector. Key Policy Insights A rapid expansion of heavy industry is the primary factor driving the rapid growth of China’s industrial CO2 emissions since 2000. Industrial structural change is the second most significant factor curbing emissions growth, and the influence of this factor is increasing. Keeping up the momentum of structural change and technological upgrades in the industrial sector would make it possible for industry emissions to decrease in the medium-term future, therefore contributing substantially to China’s goal of peaking its CO2 emissions by 2030. Realizing carbon neutrality in the longer term necessitates not only structural change in industry, but also a fundamental transformation of the energy supply system.

Labour market effects of wage inequality and skill-biased technical change

ABSTRACT This paper analyses the effects of wage inequality on labour market development. Relevant theories are ambiguous, just as public debates. We measure the effects of inequality, skill-biased and skill-neutral technical change on hours, productivity and wages in a novel structural vector error correction framework identified by economically motivated long-run restrictions. The results show that structural inequality shocks have a negative impact on hours, productivity and wages. These effects are particularly pronounced at high inequality levels and for inequality below the median wage. Skill-biased technology shocks reduce – unlike skill-neutral ones – hours but increase inequality, productivity and wages.

Dynamic Threshold Effect of Directed Technical Change Suppress on Urban Carbon Footprint in China

Promoting technical change is an important driving force for promoting the sustainable development of urban economy and ecology; however, the technical change is not always neutral and technical change may has a certain direction. This paper uses the DEA-Malmquist index to measure the directed technical change of 280 cities in China from 2009 to 2019, and uses the DMSP/OLS night light data to characterize the urban economic development level. It uses the dynamic threshold regression model to analyze the impact of directed technical change on urban carbon footprint under different economic development levels. The results show that: (1) during the study period, the carbon footprint of Chinese cities has a positive spatial correlation, and the direction of technical change is towards capital-saving overall. (2) The impact of capital-saving technical change on urban carbon footprint presents a negative double-threshold characteristic in China, and the inhibition of capital-saving technical change on the urban carbon footprint becomes stronger with the increasing economic development level. (3) The inhibitory effect of capital-saving technical change on carbon footprint has regional heterogeneity, and the inhibitory effect of capital-saving technical change on carbon footprint is stronger in eastern China than other regions. (4) Industrial structure, energy structure and innovation efficiency are mediating variables of the inhibitory effect of capital-saving technical change on carbon footprint except for population density.

Directed Technical Change and Pollution Emission: Evidence From Fossil and Renewable Energy Technologies in China

In this paper, we provide a study of the effect of directed technical change in the energy sector on pollution emission. We make an empirical analysis under the framework of the extended stochastic impacts by regression on population, affluence, and technology model and the environmental Kuznets curve hypothesis and employ the patent data onto fossil energy and renewable energy technologies from 2000 to 2015 to match the economic and environmental data of 30 provinces in China. We show that the prerequisite of restraining pollution emission is to transform the direction of energy technical change rather than only increase the magnitude of energy technical change. Furthermore, the direction of energy technical change will set up dissimilar purification effects on different pollutants, which indicates that the path of emission reduction of renewable energy technology is different. Moreover, promoting energy technology cooperation in adjacent provinces can further intensify the effect of directed energy technical change in restraining pollution emission according to the regional features of each area, and formulating targeted environmental policies to change the energy technology from dirty to clean can effectively curb environmental degradation, which is the mechanism to realize the rationalization and transformation of the energy structure.

Decomposition of climate-induced productivity growth in Indian agriculture

This paper adopts a stochastic frontier approach to investigate the trend and determinants of total factor productivity (TFP) growth in the agriculture sector of India, using extensive district-level data. The assessment of the production frontier highlights the efficiency aspect of Indian agriculture and contributes to an analysis of those factors that might be directly engaged in the production process. After controlling for the district-specific climatic effect in the production of eighteen major crops, TFP growth is deconstructed into technical progress, technical efficiency change and scale effects. Four weather parameters, average temperature, rainfall, evapotranspiration and windspeed, are defined as exogenous determinants of the technical inefficiency term to analyze the influence of changing climate. Based on the true fixed effect model and maximum likelihood method, the estimated TFP growth averaged 0.688% per year between 1990 and 2015. The relative performance of Indian states apparently differs according to estimated productivity scores. The findings show that changes in technical efficiency account for most TFP growth, whereas differences in scale components account for annual and cross-state productivity growth disparities. The study suggests that region-specific policies are required to enhance agricultural productivity and add to the understanding of the arguments over TFP growth in Indian agriculture.

Spatial Spillover Effects of Directed Technical Change on Urban Carbon Intensity, Based on 283 Cities in China from 2008 to 2019.

Technical change essentially drives regional social and economic development, and how technical change influences the regional sustainable development of the ecological environment is also of concern. However, technical change is not always neutral, so how does directed technical change affect urban carbon intensity? Is there a spatial spillover effect between these two? In order to answer these above questions, this article first explores the relationship between directed technical change and carbon intensity through the spatial Durbin model; then, it separately analyses whether the relationship between the two in low-carbon and non-low-carbon cities will differ; finally, we performed a robustness test by replacing weights, replacing the explained variable with a lag of one period, and replacing the explained variable. The conclusions are as follows: (1) There is a positive spatial correlation between the carbon intensity of Chinese cities—that is, there is a positive interaction between the carbon intensity of local cities and of neighboring cities. For every 1% change in the carbon intensity of neighboring cities, the carbon intensity of local cities changes by 0.1027% in the same direction. (2) The directed technical change has a significant inhibitory effect on urban carbon intensity, whether in local cities or neighboring cities. However, it is worth mentioning that the direct negative effect is greater in local cities than in neighboring cities. (3) The directed technical change in low-carbon cities has a stronger inhibitory effect on carbon intensity, with a direct effect coefficient of −0.5346 and an indirect effect coefficient of −0.2616. Due to less green policy support in non-low-carbon cities, the inhibitory effect of directed technical change on carbon intensity is weakened; even if the direct effects and indirect effects are superimposed, it is only −0.0510 rather than −0.7962 for low-carbon cities.

The Multiplier Effect of Endogenous Technical Change Accelerates the Transition to Photovoltaic Cells

The Multiplier Effect of Endogenous Technical Change Accelerates the Transition to Photovoltaic Cells

Technical Change and Superstar Effects: Evidence from the Rollout of Television

Superstar generate large compensation differentials among similarly talented individuals. Are superstar effects amplified by technological innovations that extend the scale over which talent is deployed? I test this idea in the market for entertainers, using the roll-out of television as a natural experiment which provides clean variation in a scale-related technological change. The launch of a local TV station increases top entertainers' incomes, resulting in a twofold increase in top-percentile income share, while reducing employment and incomes of lower-level talents. These results show clear evidence of superstar effects and are inconsistent with canonical models of skill-biased technological change.

Common Policy but Different Outcomes: Structural Change in Family Farms of Central and East European Countries after Their Accession to the EU

This paper investigates structural change in family farming in ten EU New Member States from Central and Eastern Europe which can be treated as a borderline between transition and developed economies. The paper proposes that farms using at least one Annual Work Unit (AWU) family labour are classified as family since it is considered that engaging less than one full-time family member may not show commitment to the family operation. The Oaxaca-Blinder decomposition is employed to analyse the drivers of structural change at a farm level, i.e., the extent to which it is technology or endowment driven. To compare the developments in different countries, the changes are presented in relative terms in order to reveal the relative distance travelled by the structural change in individual New Member States alongside the relative importance of technology and endowments changes. The estimation of a translog production function by country is used to derive the corresponding decompositions. Empirical analysis is based on data from the EU Farm Accountancy Data Network (FADN) for two time points—2007, when the last of the ten CEECs joined the EU—Bulgaria and Romania, and 2015 to investigate structural change during the first decade of EU membership. The results show that the differences in the initial conditions and the adjustments to the CAP have brought about quite a diverse picture concerning the changes in output in the family and non-family farms in the NMS. The a priori expected dynamics of positive output growth in family farms and negative in the non-family has only materialised in Latvia, Romania and Slovakia. The decomposition of output changes suggests a positive effect of technical change in family farms only in the early years of EU accession. Concerning endowments, their effect on structural change is mostly positive with the only exception of Slovenia. This suggests that the family farming sector grows by accumulating productive resources. However, this growth has not always materialised in increase of family farms output.

The total factor productivity index of freshwater aquaculture in China: based on regional heterogeneity.

Continuously improving freshwater aquaculture efficiency will promote the sustainable development of freshwater aquaculture, which is crucial to ensure aquatic food supply. In particular, measuring the total factor productivity (TFP) of freshwater aquaculture to find ways to improve its efficiency is of great significance to sustainable development of freshwater aquaculture industry. Therefore, based on directional distance function, this paper constructs a meta-frontier Malmquist index (MMI) model by considering the regional heterogeneity to evaluate the TFP of freshwater aquaculture of China from 2004 to 2019. The results show that (1) from the perspective of time, TFP fluctuated significantly from 2004 to 2012, while after 2013, TFP remained around 1 with small fluctuation. In other words, freshwater aquaculture in China began to maintain a relatively negative state of development. (2) From a regional point of view, this study found that freshwater aquaculture TFP of inland region is better than the TFP of coastal region. (3) From the decomposition index, the variation of freshwater aquaculture TFP was driven by the combined effect of technology change (TC) and technical efficiency change (EC). In addition, the decomposition index efficiency shows that the technical efficiency decreases and the management efficiency changes little. (4) The gap of freshwater aquaculture technology in coastal areas is very small, and close to the optimal technical level. While in inland region, on the contrary, there is more room for improvement. According to the above empirical results, this paper finally gives some policy suggestions to improve the TFP to ensure the sustainable development of freshwater aquaculture.

Economies of integration and sources of change in productivity in the Chilean water and sewerage industry: a translog cost function approach.

This paper researches the existence of economies of scale and scope in the Chilean water and sewerage industry using a translog cost function approach over the period 2010-2017. It also provides estimates of productivity growth and its determinants, technical change and scale effect. The results suggest that on average, the water industry operates under increasing economies of scale, which implies that further increases in water companies' scale of operations may be cost beneficial. Economies of scope between water and sewerage services were found for the average company, which suggests that the joint provision of these services may lead to cost savings. An average annual productivity increase of 2.5% was reported with scale effect being the major driver. Full private companies performed better than concessionary and public water companies. The results of our study can be of greater interest to the policy-makers who want to make decisions on introducing policy reforms such as mergers, unbundling of the water and sewerage supply chain, or developing incentives to improve companies' productivity.

Opportunity Cost of Environmental Regulation in China's Industrial Sector.

In this paper, we employ a directional distance function to estimate the opportunity cost arising from environmental regulations in China’s industrial sector. The change of opportunity cost is decomposed mathematically into two components including technical change and input change. Our results show that the opportunity cost attributed to environmental regulation is nil in some regions. The change of opportunity cost is marginal at the national level, as the positive effect of technical change is canceled out by the negative impact of input change on opportunity cost. Built on our mathematical decomposition, we further estimate the effects of environmental regulations on opportunity cost using a mediation model. It shows that environmental regulation has a significantly positive direct effect and a significantly negative indirect effect through foreign direct investment on opportunity cost. Our findings suggest, firstly, that inward FDI in China’s industrial sector represents relatively dirty production technology; and, secondly, industrial production has transited towards a less carbon-intensive input mix. This paper, therefore, provides new insights for the recent dynamics of carbon abatement performance of China’s industrial sector with policy implications.