Decomposition Analysis of Factors Affecting Changes in Industrial Wastewater Emission Intensity in China: Based on a SSBM-GMI Approach

Yongyi Cheng, Liheng Lu, Tianyuan Shao, Manhong Shen and Laiqun Jin
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Yongyi Cheng: School of Business, Ningbo University, Ningbo 315211, China
Liheng Lu: School of Materials Science and Chemical Engineering, Ningbo University, Ningbo 315211, China
Tianyuan Shao: School of Business, Ningbo University, Ningbo 315211, China
Manhong Shen: School of Business, Ningbo University, Ningbo 315211, China
Laiqun Jin: School of Business, Ningbo University, Ningbo 315211, China

IJERPH, 2018, vol. 15, issue 12, 1-23

Abstract: This paper investigated the factors driving the changes in industrial wastewater emission intensity (IWEI) across provinces in China. To do this, we proposed a Super-efficiency Slacks-based Measure-Global Malmquist Index (SSBM-GMI) to decompose the change in IWEI into the effects from efficiency change (ECE), technological change (TCE), capital–wastewater substitution (KWE) and labor–wastewater substitution (LWE). The method was applied to conduct an empirical study using Chinese provincial data from 2003–2015. The main findings include the following: firstly, TCE was the dominant driving force behind the reduction in IWEI with an average annual contribution of −6.4% at the national level, followed by KWE (−5.3%), LWE (−1.8%) and ECE (1.2%). Secondly, significant differences exist in the driving factors behind the reduction in IWEI across regions. The reduction in IWEIs in the Northeast area and the Great Northwest area was mainly driven by productivity growth, while the reduction in IWEIs in the other areas was mainly driven by factor substitution. Thirdly, the shortage of KWE and LWE has impeded IWEI reduction in the Great Northwest area, the Middle Reaches of the Yellow River, the Northeast area and the North area. Finally, some particular policy implications were also recommended for reducing industrial wastewater emission in China.

Keywords: industrial wastewater emission intensity; industrial economic growth; sustainable development; green total factor productivity; driving factor; production-theoretical decomposition analysis (PDA); slack-based measure (SBM) (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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