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Determinants of eco-efficiency in the Chinese industrial sector
Hidemichi Fujii1, Shunsuke Managi2
1Graduate School of Environmental Studies, Tohoku University, 6-6-20 Aramaki-Aza-Aoba, Aoba-ku Sendai 980-8579, Japan. hidemichifujii@gmail.com
Abstract:
This study measures productive inefficiency within the context of multi-environmental pollution (eco-efficiency) in the Chinese industrial sector. The weighted Russell directional distance model is applied to measure eco-efficiency using production technology. The objective is to clarify how external factors affect eco-efficiency. The major findings are that both foreign direct investment and investment for pollution abatement improve eco-efficiency as measured by air pollutant substances. A levy system for wastewater discharge improves eco-efficiency as measured by wastewater pollutant substances. However, an air pollutant levy does not significantly affect eco-efficiency as measured by air pollutants.
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