The Total Factor Productivity And GDP Based On The Environment Factors

A high economic growth speed was the aim of most countries' economic and social development. However, companying with the high economic growth speed and extensive economic growth mode, a series of social problems have been spurred out, of which, environment pollution was regarded as the direct product caused by GDP-oriented economic. A lot of researches have been carried out on the relationship between the economic development and environment, and this paper supplied a new view to do the research on the relationship between them, since GDP is an indicate of the economic development speed, and TFP is an indicate of economic development path respectively.The Green GDP was put forward for the aim to evaluate the economic development performance correctly and overcome the shortcomings of the conventional GDP. Since it was brought out in《SEEA1993》by the United Nation, it has been widely accepted, and a lot of researches have been done on it. However, there was still no authority definition on it. This paper calculated the Green GDP by simply deducted the economic loss of environmental pollution,ecological destruction and resource degradation from the conventional GDP. Hangzhou city was chosen for as a example. The results showed that the rapid economic development would have to pay a heavy external cost. The real investment cost on the wastewater was 598 million yuan, which was 0.24% of GDP in Hangzhou. The investment gap between the amount should be paid and the amount having been paid for water pollution treatment was 1.44 billion RMB, which was 0.57 percentage of GDP in Hangzhou. The degradation cost was 1.38 billion yuan in Hangzhou in 2004 including the damage loss to human health (526.94 million yuan), agriculture (146.36 million yuan) and water resources (680.34 million yuan). The Green GDP based on the water pollution in Hangzhou in 2004 is 250.1 billion yuan.In order to make it more clear the relationship between the economic development and environment, it was necessary to introduce TFP into the research framework, since TFP was an important criterion to judge whether a certain kind of economic path was sustainable or not.By distant function and DEA model, this paper calculated the technical efficiency and Malmquist index without considering environment factors in the region of Zhejiang Province and Changsanjiao District. The results showed that the technical efficiency in these two districts were different distinctly among different cities. Based on the traditional Total Factor Productivity, this paper proposed to embed the environmental factor into the TFP evaluation, which means that the TFP should be adjusted by the environment factors to reflect the performance of economic sustainability correctly. In this paper, the directional distance function method was adopted to calculate the Total Factor Productivity considering the environmental factors. And the calculation was done by SAS (9.0) program designed specially.Four major environment pollutants were chosen in this paper, which were waste water released form industry,waste gas released form industry,COD and SO₂. The results showed that the rank of technical efficiency will be changed effectively when considering environmental factors. For those cities with a high pollution emission, the rank of technical efficiency will be dropped down, while for those with a low emission, the rank will be improved respectively. This result domesticated that the Total Factor Productivity considering environment factor will be more precised to judge the economic development quality than the traditional index.In these years, the research on the field of economic development and environment were both booming respectively, but the bridge to connect them was short. This paper made a meaningful exploration on the relationship between them, which will promise to help to evaluate the economic development quality more clearly, and will be a good reference for other researchers.