The Study On Environmental Efficiency And Environmental Total Factor Productivity In China’s Industry

Since reforming and opening, the national economy develops quickly. As theleading industry of the economy, Industry is developing rapidly. But the growth of ourcountry economy largely relies on resource consumption, at the expense of theenvironment. The extensive economic growth mode leads to the terrible problem,suchas the inefficient use of resources、 environmental pollution and so on. Thecontradiction between Industrial Development and environment protection become smore and more serious.With the improvement of people’s living standard, the people’ requirements forthe environment are also increasing, and people pay more and more attention toenvironmental protection. Therefore, it is significant in theory and prac tice to studyChina’s industrial technology efficiency and total factor productivity, the factorsaffecting the efficiency of search and analysis, environmental regulation onenvironmental efficiency influence, in the environmental constraint conditions.This paper applies SBM model and Malmquist-Luenberger productivity index tomeasure industry technical efficiency and total factor productivity respectively overthe period2001-2010while accounting for environmental factors in China’s industry.Then Factors associated with environmental efficiency and environmental total factorproductivity are investigated by using dynamic generalized methods of moments(GMM) estimation of panal data. The analysis results indicate: Environmental neglectwill overestimate the level of efficiency and total factor productivity, and total factorproductivity growth was mainly driven by technology progress; The difference ofefficiency among industries is significant, and efficiency change trend is moreobvious considering the environmental factors; Industry scale, R&D expenditureintensity, foreign direct investment, capital labor ratio and other factors have differentinfluence on the the environmental efficiency and environmental total factorproductivity; The effect of environmental regulation on environmental efficiency isnot constant, and the influence coefficient has different effects in different industrieswith typical nonlinear threshold effect. Based on the empirical results, this papergives some policy suggestions.The main work of this paper is studying the efficiency of China industry based onthe static and dynamic perspective. This paper analyses the relationship between the environmental efficiency and environmental regulation and provides reference forenvironmental policy.