Marketization, environmental regulation, and eco-friendly productivity: A Malmquist–Luenberger index for pollution emissions of large Chinese firms
Journal of Asian Economics, 2021, vol. 76, issue C
Marketization requires individuals and firms to increase energy efficiency and improve environmental quality, and various levels of governments interested in environmental protection have adopted tough environmental regulations. This paper develops data envelopment analysis (DEA) to measure unified efficiency at the firm level by introducing energy utilization and pollution emissions. A Malmquist–Luenberger efficiency model with undesirable output follows radial measurement by directional distance function type. We analyze green productive efficiency in relation to polluting emissions using a large dynamic panel dataset of 229,491 Chinese manufacturing firms from 1998 to 2012. We identify that marketization and environmental regulation both significantly facilitate green productivity. Further, our findings imply that both marketization and regulatory effects weakened from the tenth to the twelfth Five-Year Plans. Regarding effects across ownership type, green total factor productivity (TFP) growth of state-owned enterprises is significantly affected by regulation but not marketization. Private and foreign-owned firms are both significantly affected by marketization and regulation. Regionally, green TFP growth is positively associated with marketization and regulation in central China. East China’s green TFP growth is motivated by marketization, and West China’s green TFP growth is strongly driven by regulation.
Keywords: Pollutant emissions; Green total factor productivity; Marketization; Environmental regulation (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:76:y:2021:i:c:s1049007821000713
Access Statistics for this article
Journal of Asian Economics is currently edited by C. Wiemer
More articles in Journal of Asian Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().