Industrial eco-efficiency and its determinants in China: A two-stage approach

China has undergone momentous changes and achieved remarkable economic progress since its economic reform and opening-up in 1978. However, the consequent resource depletion and environmental degradation have seriously restricted China’s potential for sustainable industrial development. As a practica...

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Main Authors: Ken'ichi Matsumoto, Yueyang Chen
Format: Article
Language:English
Published: Elsevier 2021-11-01
Series:Ecological Indicators
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S1470160X21007378
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author Ken'ichi Matsumoto
Yueyang Chen
author_facet Ken'ichi Matsumoto
Yueyang Chen
author_sort Ken'ichi Matsumoto
collection DOAJ
description China has undergone momentous changes and achieved remarkable economic progress since its economic reform and opening-up in 1978. However, the consequent resource depletion and environmental degradation have seriously restricted China’s potential for sustainable industrial development. As a practical tool contributing to sustainable development, the concept of eco-efficiency is considered increasingly important for reducing the trend of resource exhaustion and environmental degradation. This study first evaluated industrial eco-efficiency in 30 Chinese provinces during 2005–2015 using data envelopment analysis (DEA), and then identified the determinants of the resulting eco-efficiency scores using random-effects Tobit regression analysis. The DEA results showed that although China’s overall industrial eco-efficiency trend was upward, there were great disparities between provinces. Provinces with high industrial eco-efficiency were mainly distributed across the eastern region, while those in the often economically less developed western region had lower industrial eco-efficiency due to technological deficits and weak environmental policies. The Tobit regression results indicated that internal research and development expenditure in industrial enterprises, per capita gross regional product, and investment in wastewater treatment had positive effects on provincial industrial eco-efficiency. By contrast, the proportion of state-owned enterprises and investment in waste gas treatment had negative impacts. These findings provide valuable insights that can help provinces with low industrial eco-efficiency to pursue high-quality, green development.
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spelling doaj.art-79c9f1f1c0764507992e4f685fc08cb82022-12-21T21:48:14ZengElsevierEcological Indicators1470-160X2021-11-01130108072Industrial eco-efficiency and its determinants in China: A two-stage approachKen'ichi Matsumoto0Yueyang Chen1Faculty of Economics, Toyo University, 5–58–20 Hakusan, Bunkyo-ku, Tokyo 112–8606, Japan; Research Institute for Global Change, Japan Agency for Marine-Earth Science and Technology, 3173–25 Showa-machi, Kanazawa-ku, Yokohama, Kanagawa 236-0001, Japan; Corresponding author at: Faculty of Economics, Toyo University, 5–58–20 Hakusan, Bunkyo-ku, Tokyo 112–8606, Japan.Graduate School of Fisheries and Environmental Sciences, Nagasaki University, 1–14 Bunkyo-machi, Nagasaki 852–8521, JapanChina has undergone momentous changes and achieved remarkable economic progress since its economic reform and opening-up in 1978. However, the consequent resource depletion and environmental degradation have seriously restricted China’s potential for sustainable industrial development. As a practical tool contributing to sustainable development, the concept of eco-efficiency is considered increasingly important for reducing the trend of resource exhaustion and environmental degradation. This study first evaluated industrial eco-efficiency in 30 Chinese provinces during 2005–2015 using data envelopment analysis (DEA), and then identified the determinants of the resulting eco-efficiency scores using random-effects Tobit regression analysis. The DEA results showed that although China’s overall industrial eco-efficiency trend was upward, there were great disparities between provinces. Provinces with high industrial eco-efficiency were mainly distributed across the eastern region, while those in the often economically less developed western region had lower industrial eco-efficiency due to technological deficits and weak environmental policies. The Tobit regression results indicated that internal research and development expenditure in industrial enterprises, per capita gross regional product, and investment in wastewater treatment had positive effects on provincial industrial eco-efficiency. By contrast, the proportion of state-owned enterprises and investment in waste gas treatment had negative impacts. These findings provide valuable insights that can help provinces with low industrial eco-efficiency to pursue high-quality, green development.http://www.sciencedirect.com/science/article/pii/S1470160X21007378Industrial eco-efficiencyData envelopment analysisRandom-effects Tobit regressionDeterminantsProvincial-level analysisChina
spellingShingle Ken'ichi Matsumoto
Yueyang Chen
Industrial eco-efficiency and its determinants in China: A two-stage approach
Ecological Indicators
Industrial eco-efficiency
Data envelopment analysis
Random-effects Tobit regression
Determinants
Provincial-level analysis
China
title Industrial eco-efficiency and its determinants in China: A two-stage approach
title_full Industrial eco-efficiency and its determinants in China: A two-stage approach
title_fullStr Industrial eco-efficiency and its determinants in China: A two-stage approach
title_full_unstemmed Industrial eco-efficiency and its determinants in China: A two-stage approach
title_short Industrial eco-efficiency and its determinants in China: A two-stage approach
title_sort industrial eco efficiency and its determinants in china a two stage approach
topic Industrial eco-efficiency
Data envelopment analysis
Random-effects Tobit regression
Determinants
Provincial-level analysis
China
url http://www.sciencedirect.com/science/article/pii/S1470160X21007378
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