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Determinants of eco-efficiency in the Chinese industrial sector
Authors:Hidemichi Fujii  Shunsuke Managi
Institution:1. Interfaculty Initiative in the Social Sciences, Kobe University, Japan;2. Graduate School of Fisheries Science and Environmental Studies, Nagasaki University, Japan;3. School of Economics and Finance, QUT Business School, Queensland University of Technology, Australia;4. Department of Urban and Environmental Engineering, School of Engineering, Kyushu University, Japan;5. Research Institute of Economy, Trade and Industry, 1-3-1, Kasumigaseki, Chiyoda-ku, Tokyo, 100-8901, Japan;1. School of Business, Central South University, Changsha, 410083, China;2. School of Economics and Business Administration, Chongqing University, Chongqing, 400030, China;1. National Research Council of Italy, Institute for Economic Research on Firms and Growth (CNR–Ceris), via Real Collegio 30, 10024 Moncalieri, TO, Italy;2. Italian National School of Administration, Presidency of the Council of Ministers (Prime Minister’s Office), via dei Robilant 11, 00135 Roma, ROMA, Italy;3. University of Eastern Piedmont, Institute of Public Policy and Collective Choices (POLIS), via Cavour 84, 15121 Alessandria, AL, Italy;1. GOVCOPP and University of Aveiro, Portugal;2. NECE-UBI and Faculty of Economics, University of Coimbra, Portugal;3. NECE-UBI and University of Beira Interior, Portugal
Abstract:This study measures productive inefficiency within the context of multi-environmental pollution (eco-efficiency) in the Chinese industrial sector. The weighted Russell directional distance model is applied to measure eco-efficiency using production technology. The objective is to clarify how external factors affect eco-efficiency. The major findings are that both foreign direct investment and investment for pollution abatement improve eco-efficiency as measured by air pollutant substances. A levy system for wastewater discharge improves eco-efficiency as measured by wastewater pollutant substances. However, an air pollutant levy does not significantly affect eco-efficiency as measured by air pollutants.
Keywords:eco-efficiency  weighted Russell directional distance model  pollution  China
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