Measuring Green Growth Efficiency for Chinese Manufacturing Industries

Qu, Ying; Yu, Ying; Appolloni, Andrea; Li, Mengru; Liu, Yue

doi:10.3390/su9040637

Cited by 55 publications

(38 citation statements)

References 34 publications

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“…As for the method to measure the carbon emission efficiency, the Charnes-Cooper-Rhodes (CCR); Banker, Chames, and Cooper Mode (BCC); or slacks-based measure (SBM) model have been widely adopted by scholars [14][15][16]. However, these methods have their advantages as well as insufficiencies [16][17][18][19][20][21][22][23]. Therefore, we used the Modified Undesirable Epsilon-based measure (EBM) DEA Model to calculate the carbon emission efficiency to overcome their shortcomings [16,19,23,24].…”

Section: Introductionmentioning

confidence: 99%

Analysis of Regional Differences and Influencing Factors on China’s Carbon Emission Efficiency in 2005–2015

Zeng

Liu

et al. 2019

Energies

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With the challenge to reach targets of carbon emission reduction at the regional level, it is necessary to analyze the regional differences and influencing factors on China’s carbon emission efficiency. Based on statistics from 2005 to 2015, carbon emission efficiency and the differences in 30 provinces of China were rated by the Modified Undesirable Epsilon-based measure (EBM) Data Envelopment Analysis (DEA) Model. Additionally, we further analyzed the influencing factors of carbon emission efficiency’s differences in the Tobit model. We found that the overall carbon emission efficiency was relatively low in China. The level of carbon emission efficiency is the highest in the East region, followed by the Central and West regions. As for the influencing factors, industrial structure, external development, and science and technology level had a significant positive relationship with carbon emission efficiency, whereas government intervention and energy intensity demonstrated a negative correlation with carbon emission efficiency. The contributions of this paper include two aspects. First, we used the Modified Undesirable EBM DEA Model, which is more accurate than traditional methods. Secondly, based on the data’s unit root testing and cointegration, the paper verified the influencing factors of carbon emission efficiency by the Tobit model, which avoids the spurious regression. Based on the results, we also provide several policy implications for policymakers to improve carbon emission efficiency in different regions.

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Section: Introductionmentioning

confidence: 99%

Analysis of Regional Differences and Influencing Factors on China’s Carbon Emission Efficiency in 2005–2015

Zeng

Liu

et al. 2019

Energies

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“…The optimal policy depends on two factors: whether the products have a well-established market price, and how the government weighs on consumer welfare versus the manufacturer's profit. Taking into account the expected and undesired output, Qu et al [24] use the EBM (epsilon-based measure) model to measure the green growth efficiency of China's manufacturing industry putting forward that an environmental policy can guide green technology innovation. Furthermore, other environmental government policies such as Green Public Procurement (GPP) have also been investigated (see Cheng et al; Rizzi et al [25,26]).…”

Section: Literature Reviewmentioning

confidence: 99%

Tax or Subsidy? Optimal Carbon Emission Policy: A Supply Chain Perspective

Yin

Chen

et al. 2020

Sustainability

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With a rigid requirement for environment protection, governments need to make appropriate policies to induce firms to adopt green technology in consideration of the rapidly increasing demand for environmentally friendly products. We investigated the government policy from the perspective of a supply chain, which consisted of the upstream government (she) and the downstream manufacturing firm (he). The government decided on the policy (tax or subsidy) to maximize the social welfare, while the firm decided on the greenness level of the product, which affects the consumers' choice behavior and hence his own demand. Assuming else being equal, the government should adopt the tax policy if consumers are very sensitive to the greenness, the cost of greening is high, or the negative impact due to carbon emission is large, and subsidize the firm otherwise. We also conduct some numerical studies when price is endogenous. The main insights can be carried over.Sustainability 2020, 12, 1548 2 of 13 $5.50 per 0.1 mpg for each product. After Finland and Sweden introduced a carbon dioxide tax in 1990s, carbon pricing systems, including taxes and cap-and-trade measures (which work similarly), have been adopted or planned in 40 countries and more than 20 cities, according to the World Bank. In Canada, carbon emissions in British Columbia dropped between 5% and 15% because of the tax [8]. Therefore, how to make appropriate policy to reduce carbon emissions is a big challenge facing governments.We investigated this problem from a supply chain perspective. Specifically, we considered a two-tier supply chain consisting of one government policy-maker and one manufacturer. The key questions we aimed to answer included: (i) Which policy (tax or subsidy) should be adopted by the government? (ii) How will different factors (e.g., environment externality, the cost of new technology, etc.) affect the policy making? (iii) How will the manufacturer react in response to the government policy?We established a stylized model setting to investigate the above questions. The government, as the Stackelberg leader, decides whether to tax or subsidize the firm in a particular industry, considering his possible reactions to different policies. The firm, as the Stackelberg follower, decides greening degree of his product, considering the consciousness of consumers to environmental protection (e.g., carbon emissions, pollutants, etc.). Our main findings are three-fold: Firstly, the government should adopt a tax policy if consumers are rather sensitive to the greenness level of products, the cost of greening is high, or the negative impact due to carbon emission is large, and subsidize the firm otherwise. Secondly, the firm will adopt a greener technology no matter the which policy (tax or subsidy) the government adopts compared with the situation without any government intervention. Lastly, the less sensitive consumers are toward the greenness of products, or the lower the cost of greening, the higher the consumers' surplus.In Section 2, we discuss the bo...

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“…Social planners must pay attention to social benefits because higher employment will result in a lower local crime rate, a more stable social environment, and a higher average income. In addition, China is currently pursuing green growth in manufacturing [24]. The government provides a lot of subsidies to the renewable energy industry, so the government may have higher environmental requirements for such enterprises.…”

Section: Objective Functionsmentioning

confidence: 99%

Optimizing the Raw Material Supply Chain of the Wood Biomass Power Generation Industry for Different Stakeholders’ Benefits: An Analysis of Inner Mongolia, China

et al. 2020

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A large number of sand shrubs have been planted in western China, especially in Inner Mongolia. Sand shrubs produce a large amount of stump residue, and wood biomass power generation enterprises that use stump residue as raw materials have emerged in Wushen Banner and other areas. In this paper, the Mixed Integer Linear Programming (MILP) model is used to optimize the raw material supply chain of forest biomass power generation enterprises. Optimizations with different objectives represent the choices of different stakeholders. The optimization results are listed as follows. (1) The self-issuance behavior of enterprises is inconsistent with the enterprise behavior required by social planners; (2) When social planners only pay attention to environmental benefits, the utilization rate of raw materials in towns located far from a power plant will be greatly reduced, which is not conducive for the reuse of stump residue; (3) When social planners consider economic, environmental, and social benefits simultaneously, the utilization rate of raw materials in each town will be significantly improved, resources will be effectively utilized, and certain economic benefits will be realized; (4) It is possible to reduce the difficulty of achieving optimization goals by promoting industrial development and encouraging technological progress.

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Measuring Green Growth Efficiency for Chinese Manufacturing Industries

Cited by 55 publications

References 34 publications

Analysis of Regional Differences and Influencing Factors on China’s Carbon Emission Efficiency in 2005–2015

Analysis of Regional Differences and Influencing Factors on China’s Carbon Emission Efficiency in 2005–2015

Tax or Subsidy? Optimal Carbon Emission Policy: A Supply Chain Perspective

Optimizing the Raw Material Supply Chain of the Wood Biomass Power Generation Industry for Different Stakeholders’ Benefits: An Analysis of Inner Mongolia, China

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