The green total factor productivity and convergence in China

Abstract The green total factor productivity (GTFP) has become an important index of balancing the energy consumptions, economic development, and environmental protections. This study extends the slacks‐based directional distance function (SDDF) of Fare and Grosskopf into the framework of the Malmqu...

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Main Authors: Weiwei Zhuang, Yujia Wang, Ching‐Cheng Lu, Xiang Chen
Format: Article
Language:English
Published: Wiley 2022-08-01
Series:Energy Science & Engineering
Subjects:
Online Access:https://doi.org/10.1002/ese3.1168
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author Weiwei Zhuang
Yujia Wang
Ching‐Cheng Lu
Xiang Chen
author_facet Weiwei Zhuang
Yujia Wang
Ching‐Cheng Lu
Xiang Chen
author_sort Weiwei Zhuang
collection DOAJ
description Abstract The green total factor productivity (GTFP) has become an important index of balancing the energy consumptions, economic development, and environmental protections. This study extends the slacks‐based directional distance function (SDDF) of Fare and Grosskopf into the framework of the Malmquist–Luenberger productivity index to estimate the slack‐based GTFP. This SDDF can allow decision‐making units to explore the optimal direction and measure a more precise productivity index. For the empirical study, we employ the new model to measure the slack‐based GTFP for Chinese 30 provinces over the period of 2005–2017. Furthermore, we investigate the effect of the regional differences on the GTFP and the convergence of the Chinese GTFP with β‐converge and σ‐convergence. Our results show that there is a rapid improvement in the GTFP in China, which is attributed to the technical change. However, there exists a significant difference in GTFP for three regions of China. The eastern region performs significantly better than the others. Finally, we find there is a strong convergence in China, and the eastern region has a faster convergence than the other regions.
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spelling doaj.art-a2dacd874ab94acabf3725c8634c662b2022-12-22T02:34:09ZengWileyEnergy Science & Engineering2050-05052022-08-011082794280710.1002/ese3.1168The green total factor productivity and convergence in ChinaWeiwei Zhuang0Yujia Wang1Ching‐Cheng Lu2Xiang Chen3School of Economic Management Changzhou Vocational Institute of Mechatronic Technology Changzhou ChinaChina Academy of Financial Research Zhejiang University of Finance and Economics Hangzhou ChinaDepartment of Business National Open University New Taipei City TaiwanChina Academy of Financial Research Zhejiang University of Finance and Economics Hangzhou ChinaAbstract The green total factor productivity (GTFP) has become an important index of balancing the energy consumptions, economic development, and environmental protections. This study extends the slacks‐based directional distance function (SDDF) of Fare and Grosskopf into the framework of the Malmquist–Luenberger productivity index to estimate the slack‐based GTFP. This SDDF can allow decision‐making units to explore the optimal direction and measure a more precise productivity index. For the empirical study, we employ the new model to measure the slack‐based GTFP for Chinese 30 provinces over the period of 2005–2017. Furthermore, we investigate the effect of the regional differences on the GTFP and the convergence of the Chinese GTFP with β‐converge and σ‐convergence. Our results show that there is a rapid improvement in the GTFP in China, which is attributed to the technical change. However, there exists a significant difference in GTFP for three regions of China. The eastern region performs significantly better than the others. Finally, we find there is a strong convergence in China, and the eastern region has a faster convergence than the other regions.https://doi.org/10.1002/ese3.1168Chinaconvergencegreen total factor productivityregional differenceslack‐based directional distance function
spellingShingle Weiwei Zhuang
Yujia Wang
Ching‐Cheng Lu
Xiang Chen
The green total factor productivity and convergence in China
Energy Science & Engineering
China
convergence
green total factor productivity
regional difference
slack‐based directional distance function
title The green total factor productivity and convergence in China
title_full The green total factor productivity and convergence in China
title_fullStr The green total factor productivity and convergence in China
title_full_unstemmed The green total factor productivity and convergence in China
title_short The green total factor productivity and convergence in China
title_sort green total factor productivity and convergence in china
topic China
convergence
green total factor productivity
regional difference
slack‐based directional distance function
url https://doi.org/10.1002/ese3.1168
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