Evolution of technical efficiency in Chinese coal mining firms: the roles of competition and technology

Chih-Hai Yang and Meng-Wen Tsou

Applied Economics, 2024, vol. 56, issue 2, 133-150

Abstract: This study examines the evolution of technical efficiency (TE) and its determinants in China’s high-pollution coal mining industry. The effects of market competition, technology, and pollution abatement expenditure (PAE) on inefficiency are investigated. Using a firm-level panel dataset for the 2001–2013 period, estimation using a panel stochastic frontier model shows that the average TE was stable with a small fluctuation in the 2000s and then deteriorated in the 2010s. The majority of private entrants have lower TE than the main group of incumbents, state-owned enterprises, whereas foreign firms exhibit the highest TE among firms. We find that capital imports, research and development, and government subsidies are important factors in reducing technical inefficiency, highlighting the importance of technological activity on production efficiency. Further analysis of the relationship between PAE and TE reveals that PAE positively contributes to the efficiency of coal mining firms. Robustness checks ensure the aforementioned findings.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2023.2166670 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:56:y:2024:i:2:p:133-150

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2023.2166670

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().