Measuring static and dynamic industrial eco-efficiency in China based on the MinDS–Malmquist–Luenberger model

Pei-Pei Jiang, Yuan Wang (), Jin Luo, Lin Zhu, Rui Shi, Song Hu and Xiaodong Zhu
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Pei-Pei Jiang: Fujian Normal University
Yuan Wang: Fujian Normal University
Jin Luo: Fujian Normal University
Lin Zhu: Ministry of Ecology and Environment
Rui Shi: Johns Hopkins University
Song Hu: Nanjing University
Xiaodong Zhu: Nanjing University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2023, vol. 25, issue 6, No 18, 5261 pages

Abstract: Abstract Eco-efficiency is a practical approach to promote sustainable industrial development, as it emphasizes fewer environmental impacts alongside increased economic benefits. This study applies the super-minimum distance to a strong efficient frontier–Malmquist–Luenberger model to assess the static and dynamic eco-efficiency of 37 industrial sectors in China during 2003–2015 and analyzes how input redundancy, an excess of undesirable outputs, and a shortage of economic output influence industrial eco-efficiency. The results show that China’s overall static industrial eco-efficiency has steadily risen but remains inefficient. Furthermore, the inefficiency performance of inputs and outputs present fluctuating downward trends, and the inefficiency being more severe than output inefficiency. Moreover, clear discrepancies exist in the input and output inefficiency levels in the 37 industrial sectors. Manufacture of electrical machinery and equipment and other four sectors have achieving eco-efficiency in input, while mining of other ores is under inefficiency in input. Meanwhile, utilization of waste resources industries and other six sectors perform well in output, while the performance of mining of other ores is the worst. The average total-factor productivity of China’s industrial eco-efficiency is 0.995, which is close to the production frontier but leaves considerable room for improvement. The change is due mainly to the increased technical efficiency of production and the lag in the technological progress of production—the latter factor is emerging as a contributor to improved eco-efficiency even as the positive reinforcement of technical efficiency is reducing. The paper shares relevant policy suggestions to improve eco-efficiency and foster sustainable economic development.

Keywords: Industrial eco-efficiency; Inefficiency; Super-minimum distance to a strong efficient frontier model; Malmquist–Luenberger index (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10668-022-02263-0

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