Firm-level environmentally sensitive productivity and innovation in China

Fujii, Hidemichi and Cao, Jing and Managi, Shunsuke (2016): Firm-level environmentally sensitive productivity and innovation in China.

Abstract

This study analyzes productive efficiency in relation to CO2 emissions using a unique dataset of 562 Chinese manufacturing firms for the period from 2005 to 2009. We develop a directional distance function approach to identify technical innovators in the area of CO2 emissions. The results indicate that a large number of technical innovators are observed in the textile, paper, steel, and computer industries. Furthermore, there are clearly different trends in productivity change and corporate performance across industries and provinces. This result implies that policy makers need to consider industrial and regional characteristics to develop effective policies that conserve energy and reduce CO2 emissions.

• Item Type: MPRA Paper
• Language: English
• Keywords: Technical innovator; total factor productivity; technology adoption; CO2 emissions; Chinese manufacturing firm
• Subjects: D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q55 - Technological Innovation

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