A framework for measuring global Malmquist–Luenberger productivity index with CO2 emissions on Chinese manufacturing industries

Ali Emrouznejad and Guo-liang Yang

Energy, 2016, vol. 115, issue P1, 840-856

Abstract: China has achieved significant progress in terms of economic and social developments since implementation of reform and open policy in 1978. However, the rapid speed of economic growth in China has also resulted in high energy consumption and serious environmental problems, which hindering the sustainability of China's economic growth. This paper provides a framework for measuring eco-efficiency with CO2 emissions in Chinese manufacturing industries. We introduce a global Malmquist-Luenberger productivity index (GMLPI) that can handle undesirable factors within Data Envelopment Analysis (DEA). This study suggested after regulations imposed by the Chinese government, in the last stage of the analysis, i.e. during 2011–2012, the contemporaneous frontier shifts towards the global technology frontier in the direction of more desirable outputs and less undesirable outputs, i.e. producing less CO2 emissions, but the GMLPI drops slightly. This is an indication that the Chinese government needs to implement more policy regulations in order to maintain productivity index while reducing CO2 emissions.

Keywords: Productivity; Chinese manufacturing industries; DEA; Malmquist–Luenberger productivity index; CO2 emissions; Environmental efficiency (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (54)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:115:y:2016:i:p1:p:840-856

DOI: 10.1016/j.energy.2016.09.032

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