Sustainability performance of global chemical industry based on green total factor productivity

The sustainability of the chemical industry is crucial for achieving global sustainable production. The sustainability performance of global chemical industry is influenced by many issues synergistically and has not been fully quantified. Systematic analysis from multiple perspectives, such as resource savings, economic growth, and environmental improvement, is urgently needed to support effective macro-policy decisions. This study quantifies the variation trend of the sustainability of the global chemical industry during 2004-2014 and identifies the driving forces under the framework of green total factor productivity (GTFP). Results show that most developed countries performed efficiently (with GTFP values equal to 1) in sustainable production of the chemical industry, while the least developed countries usually performed inefficiently (with GTFP values lower than 1). Notably, a polarization of sustainability in the chemical industry has been confirmed among countries with different production capacities. From 2004 to 2014, the sustainability performance of the global chemical industry has generally improved. It was mainly driven by technological progress (resulting from independent technological innovation) rather than efficiency catching-up (derived from technological learning). Furthermore, technological progress was manifested mainly as the improvement in CO₂ reduction performance and capital saving performance, while technological learning was manifested mainly as the improvement in labor saving performance. Based on the conclusions of this study, the international world is suggested to take action to strengthen international technology cooperation, and governments should make prioritized and focused policies to effectively promote the sustainability of global chemical industry.