This paper describes the authors. attempt to measure effects of environmental regulations imposed on industrial solid waste generation. Productivity was measured using the Luenberger Productivity Index based on Data Envelopment Analysis. The sources of productivity change were examined by decomposing the observed index into efficiency change and technical change components. Results show that Japanese manufacturing industries have entered a stagnant phase and actually showed no high productivity growth during 1990-2006. Furthermore, positive changes in surviving industries mainly result from technological innovation, not from improved efficiency.