Green Productivity Growth Research Articles

High-quality marine economic development in China from the perspective of green total factor productivity growth: dynamic changes and improvement strategies

High-quality marine economic development (HMED) is regarded as a new development pattern of the marine economy in China. This paper aims to examine the dynamic changes and improvement strategies of HMED from the perspective of the green total factor productivity (GTFP) growth. First, the GTFP growth of the marine economy in China’s coastal regions for the period 2007–2020 is calculated using the bootstrapped Malmquist index. Second, the dynamic changes and spatial impacts of the GTFP growth are characterized using kernel density estimation (KDE). Moreover, a novel analytical framework to study the improvement strategies of the GTFP is developed. Within this framework, the fuzzy set qualitative comparative analysis (fsQCA) method is used to explore the paths to achieve HMED. The findings show that: (i) the GTFP growth for coastal regions shows significant fluctuations, suggesting that a stable pattern of marine economic development has yet to be established; (ii) the regional distribution of GTFP growth varies significantly, with provinces with fast GTFP growth gathering resources from neighboring provinces, resulting in a siphon effect; (iii) for coastal provinces that lack certain development conditions, the combined effect of other advantageous factors can be used to achieve HMED. Finally, this study presents policy recommendations for achieving HMED, which can provide insights into the design of China’s future marine economic policies.

Renewable energy transition and green productivity growth in sub‐Saharan African countries: A convergence analysis

AbstractClimate change is one of the main issues facing countries in sub‐Saharan Africa. Improving green productivity is essential for transitioning to low‐carbon economies and mitigating climate change in this region. The existing literature does not emphasise the role of the energy transition in green productivity growth. Yet this analysis is important given the essential role of energy in the production process and the high endowment of renewable energy sources in the area. Thus, this paper contributes to the literature by examining the effect of the renewable energy transition on green productivity growth through a convergence analysis for 35 sub‐Saharan African countries from 2000 to 2020. The results of the logt test reveal the existence of three main convergence clubs in terms of green productivity. The first club with low productivity is made up of 23 countries, the second club with average productivity contains 8 countries, and the third club with high productivity comprises 3 countries, while 1 country is divergent. The renewable energy transition is a determining factor in the formation of these convergence clubs. Indeed, the results of the ordered logit regression show that an increase in the level of the renewable energy transition has a positive impact on the probability of countries joining convergence clubs with higher green productivity. Further analysis with the Generalized Method of Moment (GMM) reveals that the critical threshold for renewable energy share in the energy mix that allows countries to converge globally toward the green productivity frontier in the long term is 32.63%. Regarding policy implications, the results highlight the need to encourage the renewable energy transition to increase green productivity in sub‐Saharan African countries. This could involve strengthening policies to promote investment in the sector (creation of green funds and/or tax incentives) and subsidies for renewable energy consumption.

A Study on the Changes of Green Total Factor Productivity in Chinese Cities under Resource and Environmental Constraints

Confronting the dual challenges of excessive resource consumption and environmental pollution, the traditional extensive economic development pattern significantly impeded the high-quality development of the Chinese economy. Examining variations in green total factor productivity across different types of cities holds substantial practical significance for promoting coordinated regional development and facilitating the green transformation of urban economies. Panel data from 283 cities in China spanning the years 2006 to 2020 were selected for analysis. The window-Malmquist–Luenberger index model, incorporating a mixed distance function, was employed to assess changes in green total factor productivity among the sample cities. The results were then categorized and analyzed based on different city attributes. The findings indicate that (1) the variation in green total factor productivity across China’s four major regions from 2006 to 2020 is generally characterized by an initial decline followed by an increase; (2) the proportion of cities with significantly improved green total factor productivity decreases from the east to the central, western, and northeastern regions; (3) the increase in green total factor productivity is positively correlated with city size, suggesting that larger cities experience higher growth in green total factor productivity; (4) first- and second-tier cities exhibit a relatively high mean value of green total factor productivity growth, while third-, fourth-, and fifth-tier cities demonstrate relatively lower growth.

Does manufacturing agglomeration promote green productivity growth in China? Fresh evidence from partially linear functional-coefficient models

The influence of manufacturing agglomeration on economic efficiency is substantial, yet its effects on Green Total Factor Productivity (GTFP) are still subject to debate. It is vital to comprehend the relationship between these two factors to craft effective sustainable development policies. Employing the newly developed partially linear functional-coefficient panel data approach, this study examines the nonlinear relationship between manufacturing agglomeration and GTFP, with a comprehensive consideration of the heterogeneity inherent to city geographical attributes and urban scale. Our results reveal that manufacturing agglomeration, on average, fosters GTFP, while the positive effect consists of two opposite components. Agglomeration promotes the diffusion of technology at any stage of urban development, but it can lead to congestion effects in well-developed economies, thereby diminishing efficiency. Our nonlinear approach indicates the turning points of the negative impact. Additionally, the heterogeneity of the relationship between agglomeration and GTFP across cities with varied locations and scales suggested that strategies for manufacturing agglomeration and green development should be tailor-made for individual city types.

Research and development expenditures, technology spillovers, and green productivity in agriculture: an empirical analysis

ABSTRACT We study the relationship between technology spillovers from trade, domestic research and development (R&D) spending, and the growth in green total factor productivity within the agricultural sector. An empirical illustration is provided using a sample of 48 countries involved in China’s Belt and Road Initiative from 2000 to 2019. Our findings highlight the important role of agricultural imports as a positive driving force behind green productivity growth, while the impact of domestic R&D expenditures on agricultural productivity lacks statistical significance in our sample. Furthermore, we find that trade-related technological spillovers drive environmentally sustainable agricultural growth in economically developed nations, but this effect is weaker in developing countries. Conversely, greater domestic investment in agricultural research and development programs helps promote green productivity growth in relatively rich countries, but its influence diminishes in middle-income and developing countries. Lastly, a positive impact of importing vegetable and edible oil products on productivity is observed.

Going green while getting lean: Decomposing carbon and green total factor productivity

While research on carbon productivity is growing rapidly, the role of structural change in green transition remains unexplored due to the scarcity of firm-level emission data. This study addresses this gap by utilizing unique register-based greenhouse gas emission data from Finland’s energy-intensive manufacturing firms for 2000–2019. Applying a structural change productivity decomposition, we break down the sector’s carbon productivity and green total factor productivity into four components: contributions from non-switching continuing firms, industry-switching continuing firms, the effects of entry and exit, and resource allocation. The findings highlight the important role of structural change in the sector’s productivity. Non-switching continuing firms emerged as the key drivers of both carbon and green total factor productivity growth. The contribution of entry and exit was negative during the financial crisis, while inefficient resource allocation significantly hindered productivity growth throughout the study period. These findings emphasize the importance of public subsidies targeted at environmentally efficient firms to enhance their competitiveness under challenging market conditions. Furthermore, the establishment of a stable yet positive carbon price would incentivize less-productive firms to adopt environmentally friendly technologies.

Analyzing the Tradeoff Between the Economic and Environmental Performance: The Case of the Chinese Manufacturing Sector

The so-called by-production approach, introduced by Murty and Russell [“On modeling pollution-generating technologies,” Department of Economics, University of California, Riverside, CA, USA, 2002], has provided researchers with an improved methodology for approximating polluting production technologies. However, the original by-production model is not capable of addressing the potential tradeoff between the economic and environmental performance since it does not impose any relationship between its economic and environmental subtechnologies. Although this link has been recently proposed in the extensions to the original by-production approach, the tradeoff framework remains ambiguous with respect to the weights that can be assigned to the economic and environmental subobjectives. This article proposes a novel approach for estimating the green productivity growth in the Chinese manufacturing sector based on the scenario analysis that simulates policy preferences. Our results suggest that environmental inefficiency is generally higher than economic inefficiency and that the annual growth rates of economic and environmental productivity are sensitive to the chosen scenario or the weights assigned to the different types of performance. We demonstrate that productivity growth can range from −0.43%, when only the environmental performance is considered to 2.56%, when only the economic performance is taken into account.

Digitalization and sustainable development: Evidence from OECD countries

To examine the intricate relationship between digitalization development and sustainable development, this study commences its analysis by employing the entropy method to establish an integrated indicator of digitalization development among advanced nations. Subsequently, we utilize a panel dataset spanning a decade from 2010 to 2020, encompassing 36 developed countries, to estimate Green Total Factor Productivity (GTFP) growth. We establish a fixed effects model, a mediation effect model and a threshold regression model to explore the relationship between the two variables. The empirical findings of this research reveal a significant positive association between the progress and enhancement of digitalization and the advancement of sustainable development (GTFP). Furthermore, this research elucidates the underlying mechanism by which digitalization development indirectly fosters the advancement of green productivity. This facilitation occurs through the promotion of technological innovation, the enhancement of human capital, and tupgrades in the industrial framework. Notably, our study finds the non-linear relation between digitalization development and GTFP growth, suggesting that the magnitude of impact on environmental performance is contingent on the scale of technological innovation, the growth of human capital, and the level of financial development.

Transitions towards green productivity in Africa: Do sovereign debt vulnerability, eco‐entrepreneurship, and institutional quality matter?

AbstractImproving green productivity (GP) is critical for achieving global sustainable green development. Yet, past efficiency studies on the African continent have ignored Africa's GP, estimation, and driving factors. Specifically, the role of sovereign debt vulnerability, environmental entrepreneurship, and institutional quality in ensuring Africa's green productivity development is lacking. Therefore, this study built a meta‐frontier biennial weighted modified data envelopment analysis (DEA) model to evaluate green productivity across resource‐intensive and non‐resource‐intensive African countries from 2010 to 2019. Further, the study adopted the global Malmquist‐Luenberger productivity index (GML) to investigate the dynamic changes in African green productivity growth. The results suggest that only a few African countries are efficient, implying more room for improvement for the other countries. The heterogeneity of green productivity across the resource's classification exhibits significant disparity. The technology gap also prevails among the two resource classifications of African countries. The GML index indicates that Africa's green productivity is mainly explained by technical change instead of efficiency change. The bootstrap truncation regression suggests an inverted U‐shaped nexus between growth and green productivity in Africa and resource‐intensive countries (RIC). Green environmental entrepreneurship positively affects green productivity in Africa. On the components of institutional quality, we observed that the rule of law positively influences green productivity in non‐resource‐intensive countries (NRIC) and the whole of Africa. In contrast, political stability, government effectiveness, voice and corruption negatively affected green productivity in NRIC. Also, foreign direct investment (FDI) and sovereign debt vulnerability negatively correlate to green productivity in Africa as a whole and NRIC, respectively. The findings of this study aid in raising awareness of green productivity in developing countries, which is crucial in boosting global green development.

Examining green productivity amidst climate change technological development and spillovers in the Nordic economies

The common ground of both critics and proponents of green productivity is arguably hinged on the main role of environmental technological advancement. Considering the drive for climate-neutral economy among the Nordic states, the current study examines the role of climate change technological development within the countries and technological spillovers across countries in the pursuit for green economy. By using a combination of pooled mean group approach of autoregressive distributed lag (for coefficient estimation) and the recently developed Granger non-causality approach by Juodis et al. (2021) for the panel dataset analysis over the period 1990–2018, the results reveal that both domestic technological development and spillovers from abroad promote long-run green productivity growth in the panel and country-specific estimations. In both estimations, the impact of international diffusion of climate change technologies on green productivity is found to be larger. Additionally, the influence of these two dynamics of climate change-related technologies on attaining greening economy is the most impactful in Sweden. In the remaining Nordic economies, climate change technology spillovers in Denmark are more impactful than in Finland and least in Norway, while climate change technological development in Norway drives green productivity more than in Finland and least in Denmark. As a robust insight, the Granger causality techniques revealed causality from climate change technologies within the countries, climate change technology spillovers, and population to green productivity. Consequently, public policies should promote green innovativeness and especially learning and knowledge transfer from other countries to achieve climate neutrality targets.

Green total factor productivity growth and its driving forces in China’s fisheries sector

The rapid development of China’s fisheries sector has brought about significant environmental problems, which are detrimental to the sustainable development of the sector. Balancing environmental protection while promoting fisheries development has become an urgent issue in China. Based on data from 30 provincial-level administrative regions in China from 2004 to 2019, this study utilizes the Epsilon-based Measure (EBM) model considering undesirable outputs and the global Malmquist-Luenberger (GML) index to measure the green total factor productivity (GTFP) growth in China’s fisheries sector. Furthermore, it explores the spatiotemporal evolution and driving forces of fisheries GTFP growth using spatial Durbin model (SDM). The results indicate that ignoring the resource and environmental costs in fisheries production would overestimate the growth of total factor productivity (TFP) by 1.3%. The growth of fishery output primarily comes from the increase in input factors, exhibiting extensive characteristics that have been gradually diminishing over time. During the sample period, the provinces with the fastest growth in GTFP shifted from being mainly concentrated in the central and western regions to the eastern region. The local driving forces behind the improvement of fisheries GTFP include internet penetration rate, transportation convenience, education level of rural residents. The driving forces from economically similar provinces include the positive spatial interplay between provinces, fishery disaster rate, fisherman training, fishery trade openness, and urbanization rate. Overall, these finds offer a novel approach to reexamine the growth of China’s fisheries and provide valuable insights for the future fisheries development.

Does innovative city pilot policy promote urban green growth in China? An analysis of green total factor productivity, 2005–2020

The innovative city pilot policy (ICPP) is an essential manifestation of China’s construction of an innovative and green-driven development country. We incorporated urban green total factor productivity (GTFP) growth into the evaluation of ICPP. Based on the panel data of 223 cities in China from 2005 to 2020, we used the difference-in-differences model to empirically assess the influence and mechanism of the ICPP on urban GTFP growth. The main results show that (i) The ICPP has maintained an effectively fluctuating promotion on urban GTFP growth, mainly manifested in the urban green technological progress improvement. (ii) The ICPP has urban heterogeneity in promoting GTFP growth in pilot cities, mainly affecting key cities such as provincial capitals. (iii) The interaction between the agglomeration of producer services and the ICPP inhibits GTFP growth in pilot cities.

To pick (or not to pick) the high-hanging fruits: Cleaner production audits and firm total factor energy efficiency

The “low-hanging fruits” measures that easily and quickly reduced pollution and energy intensity over the past decades are now giving rise to issues. Cleaner production may provide new opportunities to gain the “high-hanging fruits”—more challenging or costly actions that have greater environmental and energy benefits but require advanced technologies or management for implementation. This study provides empirical evidence on the effects of cleaner production audits (CPAs) on Chinese manufacturing firms' total factor energy efficiency (TFEE), whose enhancement synergizes climate mitigation and green productivity growth. The study analyzes the effects of CPAs by employing a staggered difference-in-difference strategy combined with propensity score matching to compare samples of treated and untreated industrial firms for the period of 2000–2014. The findings show that regulated firms experience a 10.4% increase in TFEE. The contributions of green pure technical efficiency and green technical progress are 7.9% and 2.7%, respectively. Additionally, non-heavy polluters, small firms, and private firms demonstrate the greatest improvements in TFEE. However, CPAs do not significantly impact the TFEE of firms with high dependence on fossil energy. Finally, the mechanism analyses demonstrate that inner resource allocation optimization may be the main solution for improving TFEE by enhancing green pure technical efficiency. Green technological innovations in energy alternatives are the most promising paths for increasing TFEE by promoting green technical progress. These findings illuminate how manufacturing firms pick the “high-hanging fruits” of energy efficiency in more cost-effective ways and suggest useful insights for cleaner production promotion.

Digital inclusive finance and green total factor productivity growth in rural areas

Transitioning to environmentally friendly economic growth is crucial for achieving sustainable development. Digital inclusive finance (DIF) can promote environmentally friendly economic activities and play a crucial role in fostering green and low-carbon development. In this context, a fundamental research question revolves around the theoretical foundations of how DIF impacts the growth of green total factor productivity (GTFP) and whether this relationship can be empirically verified. This question is particularly relevant for rural areas where financial innovations are necessary for the advancement of businesses and society as a whole. Additionally, expanding DIF can bring benefits to the environment, which is affected by agricultural activities. Therefore, it is important to assess the mechanisms behind the development of DIF and its impact on agricultural productivity growth. This paper presents an analysis of the interaction between DIF and GTFP growth in China's agricultural sector. Panel data from 2012 to 2019 at the province level are used for this analysis. The results reveal that GTFP and DIF demonstrate similar growth patterns, with DIF significantly contributing to GTFP growth. DIF can enhance GTFP by promoting information channels and fostering innovation in green technologies.

Resource misallocation and unbalanced growth in green total factor productivity in Chinese agriculture

We measure the regional gaps in green total factor productivity (GTFP) growth by using the Dagum’s Gini coefficient based on panel data for 306 cities from 1996 to 2017, then adopt a geographical detector to test the contribution of resource misallocation to the unbalanced growth in GTFP. The results show that Chinese agricultural GTFP continues to grow, but the overall growth gap has expanded year by year, mainly due to the inter-provincial gap. Compared with land, labor and machinery, fertilizer misallocation is the main factor driving the unbalanced growth in GTFP. Moreover, the interaction contribution of fertilizer misallocation with any one resource misallocation is higher than that in a single factor. Finally, resource misallocation also leads to unbalanced growth in technological progress and technical efficiency, but more so for the latter. Our research helps to provide a new solution to the “dilemma” of food security and ecological security from the perspective of optimizing resource allocation.

Research on the Influencing Factors of The Green Coordinated Development of Productive Service Industry and Manufacturing Industry Under the Background of Dual Carbon

Under the dual-carbon background, along with the process of the two-wheel drive development strategy, the industrial synergistic agglomeration has quietly become the "new normal" of urban industrial spatial layout, and the green total factor productivity has become an essential measure of the quality of economic development of cities in China. This project takes the synergistic agglomeration at the factor level between the productive service industry and manufacturing industry as the perspective and analyzes the realization mechanism of green total factor productivity growth under the synergistic agglomeration of the manufacturing industry and productive service industry from the current situation of China's industrial development, which is also a deepening and expanding of the theory of agglomeration economy. This project first discusses the "greening" issue in the development process of the productive service industry and manufacturing industry, and applies the super-efficient DEA model to account for the green total factor productivity of the productive service industry and manufacturing industry according to the difference of industrial characteristics, and then expounds the inner mechanism of green total factor productivity growth under the synergistic agglomeration of industries. Then, the panel data of 24 provinces in China are used to modify the existing indexes for measuring the level of industrial synergistic agglomeration and analyze the impact factors of the synergistic evolution of the productive service industry and the manufacturing industry on the green total factor productivity. Finally, through scenario simulation analysis, different policy scenarios with different policy incentives are set up to study the impact of policy incentives further and propose corresponding policy recommendations.

Inclusive green productivity growth in China: identification of sources and evolutionary patterns

Inclusive green productivity growth in China: identification of sources and evolutionary patterns

Environmental regulation and agricultural green productivity growth in China: A retest based on ‘Porter Hypothesis’

ABSTRACT Based on the panel data of provincial units in China from 2000 to 2020, this paper uses the entropy method to calculate agricultural environmental regulation level in China from the perspectives of afforestation projects, water conservancy projects and environmental protection projects. Then, this paper calculates agricultural non-point source pollutant emissions in China by using the unit survey and evaluation method, and calculates agricultural green productivity growth in China by using the SBM directional distance function and Luenberger productivity index. On this basis, the influence of environmental regulation on agricultural green productivity growth in China and its mechanism are empirically analysed. The results show that:(1) During the sample period, agricultural environmental regulation level and agricultural green productivity growth increased significantly, while the emission density of agricultural non-point source pollution decreased significantly; (2) On the whole, environmental regulation significantly promoted agricultural green productivity growth in China, which was mainly reflected in the promotion of agricultural green technology progress change; (3) Environmental regulation can significantly promote agricultural green productivity growth in China through the channel of agricultural innovation investment. The innovation of this paper lies in the measurement of agricultural environmental regulation, and the analysis of the moderating effect of agricultural innovation investment on the impact of environmental regulation on agricultural green productivity growth in China. The research conclusions of this paper verify the ‘Porter Hypothesis’ theory in the field of agriculture, and have guiding significance for China to promote agricultural green productivity growth by relying on environmental regulation.

On the driving forces of green total factor productivity growth in China: evidence from biased technological progress analysis

The traditional model of factor-driven economic growth can no longer be maintained due to an increasing demand to save energy and reduce emissions and a rapid rise in the cost of related factors. The concept of green total factor productivity (GTFP) has emerged as an essential component of high-quality economic growth; consequently, how to boost GTFP through the development of technical advancement has become an important question in recent years. An improved CES production function of labor, capital, and energy is created using the theoretical framework for biased technological growth as its foundation. Subsequently, the mechanisms resulting from the synergy of factor structure, factor efficiency and biased technological progress (BTP) on GTFP are theoretically deduced and empirically analyzed. The conclusion shows that the types of technical advancement are mainly net labor-enhancing and net energy-enhancing technical advancement in China from 2001 to 2017. Due to the biased effect of technical advancement, the relative comparison of the three elements is determined predominantly by excessive capital investment and less by labor and energy. Factor-enhancing technical advancement led to the growth of GTFP, while the synergistic effect of BTP, factor structure and factor efficiency hindered the growth of GTFP.

Green Technological Progress Implications on Long-Run Sustainable Economic Growth

The main objective of this study is to model and examine the green technological progress’s positive and negative externalities spillover effects on the sustainable economic growth of 15 economies from Asia, the Pacific, and Latin America. The study calculated labour and capital contributions to green total factor productivity growth via the inclusion of CO2 emissions as undesirable output or private unpriced input and energy consumption that proxies for unmeasured pollutant emissions. The results, in most cases, confirm that a high level of air pollutant emissions generated by these countries’ economic development affected the growth rates of TFP growth as an indicator of green technological progress. The significant contribution of this study is to integrate innovation and climate change in the form of green productivity (green technological progress). The role of these externalities on long-term sustainable economic growth has been ignored by several past studies undertaken in these areas.