IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i21p11761-d663901.html
   My bibliography  Save this article

Exploring the Sustainability of Resource Flow and Productivity Transition in Vietnam from 1978 to 2017: MFA and DEA-Based Malmquist Productivity Index Approach

Author

Listed:
  • Ta-Thi Huong

    (Department of Civil and Environmental Engineering, University of Ulsan, Daehak-ro 93, Nam-gu, Ulsan 680-749, Korea)

  • Liang Dong

    (Department of Public Policy, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon, Hong Kong 999077, China
    School of Energy and Environment, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon, Hong Kong 999077, China)

  • Izhar Hussain Shah

    (Department of Civil and Environmental Engineering, Imperial College London, Skempton Building, London SW7 2AZ, UK)

  • Hung-Suck Park

    (Department of Civil and Environmental Engineering, University of Ulsan, Daehak-ro 93, Nam-gu, Ulsan 680-749, Korea)

Abstract

Resource efficiency is a primary policy goal in many developing countries that are resources suppliers. This study performed a first try to explore the resource productivity and efficiency of an emerging world factory, Vietnam, by applying an improved economy-wide material flow analysis (MFA) integrated with a data envelopment analysis (DEA)-based Malmquist productivity index approach (MDEA). Resource flows from 1978 to 2017, and the corresponding utilization efficiency considering the unexpected environmental outputs, as well as productivity were explored in depth. The results highlighted a positive correlation between rapid growth among domestic material consumption (DMC), GDP per capita, and material intensity (DMC/capita) in Vietnam during the last four decades. Meanwhile, the resource productivity (USD/DMC) increased from 82.4 USD/ton to 125 USD/ton (2017), presenting a much slower pace than that of Japan and China. The IPAT-based decomposition analysis highlighted the contribution of rising affluence (94%) and population (21%) to the rapid growing DMC, while the technology factor (DMC/GDP) needed to be further enhanced. Finally, the total factor productivity, when comparing between Vietnam, China, South Korea, and Japan, showed that, on the one hand, the Vietnamese economy has strongly been changed in a positive direction with EFFCH 1.061 and TECHCH 1.046 during the last four decades. One the other hand, Vietnam is still material intensive and has low material productivity. Our analytical results recommend Vietnam to strengthen technology innovation and aim for efficiency enhancement through closely coordinated policies on sustainable resource consumption, carbon reduction, and economic growth, in line with the United Nations Sustainable Development Goals for 2030 (SDGs 2030).

Suggested Citation

  • Ta-Thi Huong & Liang Dong & Izhar Hussain Shah & Hung-Suck Park, 2021. "Exploring the Sustainability of Resource Flow and Productivity Transition in Vietnam from 1978 to 2017: MFA and DEA-Based Malmquist Productivity Index Approach," Sustainability, MDPI, vol. 13(21), pages 1-26, October.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:11761-:d:663901
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/21/11761/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/21/11761/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barker, Tom & Üngör, Murat, 2019. "Vietnam: The next asian Tiger?," The North American Journal of Economics and Finance, Elsevier, vol. 47(C), pages 96-118.
    2. Chieh-Wen Chang & Kun-Shan Wu & Bao-Guang Chang, 2019. "Productivity Change and Decomposition in Taiwan Bakery Enterprise―Evidence from 85 °C Company," Sustainability, MDPI, vol. 11(24), pages 1-13, December.
    3. Anna Łozowicka, 2020. "Evaluation of the Efficiency of Sustainable Development Policy Implementation in Selected EU Member States Using DEA. The Ecological Dimension," Sustainability, MDPI, vol. 12(1), pages 1-17, January.
    4. Peter L. Daniels & Stephen Moore, 2001. "Approaches for Quantifying the Metabolism of Physical Economies: Part I: Methodological Overview," Journal of Industrial Ecology, Yale University, vol. 5(4), pages 69-93, October.
    5. York, Richard & Rosa, Eugene A. & Dietz, Thomas, 2003. "STIRPAT, IPAT and ImPACT: analytic tools for unpacking the driving forces of environmental impacts," Ecological Economics, Elsevier, vol. 46(3), pages 351-365, October.
    6. Ang, B.W. & Liu, F.L., 2001. "A new energy decomposition method: perfect in decomposition and consistent in aggregation," Energy, Elsevier, vol. 26(6), pages 537-548.
    7. Fridolin Krausmann & Simone Gingrich & Reza Nourbakhch‐Sabet, 2011. "The Metabolic Transition in Japan," Journal of Industrial Ecology, Yale University, vol. 15(6), pages 877-892, December.
    8. World Bank, 2017. "World Development Indicators 2017," World Bank Publications - Books, The World Bank Group, number 26447.
    9. Yuan Zhang & Zhen Yu & Juan Zhang, 2021. "Analysis of carbon emission performance and regional differences in China’s eight economic regions: Based on the super-efficiency SBM model and the Theil index," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-21, May.
    10. Jinkai Li & Jingjing Ma & Wei Wei, 2020. "Analysis and Evaluation of the Regional Characteristics of Carbon Emission Efficiency for China," Sustainability, MDPI, vol. 12(8), pages 1-22, April.
    11. Revilla Diez Javier, 2016. "Vietnam 30 years after Doi Moi: achievements and challenges," ZFW – Advances in Economic Geography, De Gruyter, vol. 60(3), pages 121-133, November.
    12. Mohsen Afsharian & Heinz Ahn, 2015. "The overall Malmquist index: a new approach for measuring productivity changes over time," Annals of Operations Research, Springer, vol. 226(1), pages 1-27, March.
    13. Wiedenhofer, Dominik & Fishman, Tomer & Lauk, Christian & Haas, Willi & Krausmann, Fridolin, 2019. "Integrating Material Stock Dynamics Into Economy-Wide Material Flow Accounting: Concepts, Modelling, and Global Application for 1900–2050," Ecological Economics, Elsevier, vol. 156(C), pages 121-133.
    14. Wei Liu & Jinping Tian & Lujun Chen & Wanying Lu & Yang Gao, 2015. "Environmental Performance Analysis of Eco-Industrial Parks in China: A Data Envelopment Analysis Approach," Journal of Industrial Ecology, Yale University, vol. 19(6), pages 1070-1081, December.
    15. Heinz Schandl & James West, 2012. "Material Flows and Material Productivity in China, Australia, and Japan," Journal of Industrial Ecology, Yale University, vol. 16(3), pages 352-364, June.
    16. Heming Wang & Seiji Hashimoto & Yuichi Moriguchi & Qiang Yue & Zhongwu Lu, 2012. "Resource Use in Growing China," Journal of Industrial Ecology, Yale University, vol. 16(4), pages 481-492, August.
    17. Heinz Schandl & Graham M. Turner, 2009. "The Dematerialization Potential of the Australian Economy," Journal of Industrial Ecology, Yale University, vol. 13(6), pages 863-880, December.
    18. Shem, Caitlin & Simsek, Yeliz & Hutfilter, Ursula Fuentes & Urmee, Tania, 2019. "Potentials and opportunities for low carbon energy transition in Vietnam: A policy analysis," Energy Policy, Elsevier, vol. 134(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fishman, Tomer & Schandl, Heinz & Tanikawa, Hiroki, 2015. "The socio-economic drivers of material stock accumulation in Japan's prefectures," Ecological Economics, Elsevier, vol. 113(C), pages 76-84.
    2. Kostas Bithas & Panos Kalimeris, 2017. "The Material Intensity of Growth: Implications from the Human Scale of Production," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(3), pages 1011-1029, September.
    3. Izhar Hussain Shah & Hung‐Suck Park, 2021. "Chronological change of resource metabolism and decarbonization patterns in Pakistan: Perspectives from a typical developing country," Journal of Industrial Ecology, Yale University, vol. 25(1), pages 144-161, February.
    4. Pothen, Frank & Schymura, Michael, 2015. "Bigger cakes with fewer ingredients? A comparison of material use of the world economy," Ecological Economics, Elsevier, vol. 109(C), pages 109-121.
    5. Martinico-Perez, Marianne Faith G. & Schandl, Heinz & Fishman, Tomer & Tanikawa, Hiroki, 2018. "The Socio-Economic Metabolism of an Emerging Economy: Monitoring Progress of Decoupling of Economic Growth and Environmental Pressures in the Philippines," Ecological Economics, Elsevier, vol. 147(C), pages 155-166.
    6. Marco Bianchi & Carlos Tapia & Ikerne del Valle, 2020. "Monitoring domestic material consumption at lower territorial levels: A novel data downscaling method," Journal of Industrial Ecology, Yale University, vol. 24(5), pages 1074-1087, October.
    7. Opoku, Eric Evans Osei & Boachie, Micheal Kofi, 2020. "The environmental impact of industrialization and foreign direct investment," Energy Policy, Elsevier, vol. 137(C).
    8. Julia K Steinberger & Fridolin Krausmann & Michael Getzner & Heinz Schandl & Jim West, 2013. "Development and Dematerialization: An International Study," PLOS ONE, Public Library of Science, vol. 8(10), pages 1-11, October.
    9. Kassouri, Yacouba & Alola, Andrew Adewale & Savaş, Savaş, 2021. "The dynamics of material consumption in phases of the economic cycle for selected emerging countries," Resources Policy, Elsevier, vol. 70(C).
    10. West, James & Schandl, Heinz, 2013. "Material use and material efficiency in Latin America and the Caribbean," Ecological Economics, Elsevier, vol. 94(C), pages 19-27.
    11. Liang Chen & Zhifeng Yang & Bin Chen, 2013. "Scenario Analysis and Path Selection of Low-Carbon Transformation in China Based on a Modified IPAT Model," PLOS ONE, Public Library of Science, vol. 8(10), pages 1-9, October.
    12. Alessio Miatto & Nargessadat Emami & Kylie Goodwin & James West & Mohammad Sadegh Taskhiri & Thomas Wiedmann & Heinz Schandl, 2024. "Australia's circular economy metrics and indicators," Journal of Industrial Ecology, Yale University, vol. 28(2), pages 216-231, April.
    13. Joris Baars & Mohammad Ali Rajaeifar & Oliver Heidrich, 2022. "Quo vadis MFA? Integrated material flow analysis to support material efficiency," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1487-1503, August.
    14. Jaruwan Chontanawat, 2019. "Driving Forces of Energy-Related CO 2 Emissions Based on Expanded IPAT Decomposition Analysis: Evidence from ASEAN and Four Selected Countries," Energies, MDPI, vol. 12(4), pages 1-23, February.
    15. Kristian Skånberg & Åsa Svenfelt, 2022. "Expanding the IPAT identity to quantify backcasting sustainability scenarios," Futures & Foresight Science, John Wiley & Sons, vol. 4(2), June.
    16. Ulucak, Recep & Koçak, Emrah & Erdoğan, Seyfettin & Kassouri, Yacouba, 2020. "Investigating the non-linear effects of globalization on material consumption in the EU countries: Evidence from PSTR estimation," Resources Policy, Elsevier, vol. 67(C).
    17. Klaus Hubacek & Kuishuang Feng & Bin Chen, 2011. "Changing Lifestyles Towards a Low Carbon Economy: An IPAT Analysis for China," Energies, MDPI, vol. 5(1), pages 1-10, December.
    18. Feng, Tian-tian & Yang, Yi-sheng & Xie, Shi-yan & Dong, Jun & Ding, Luo, 2017. "Economic drivers of greenhouse gas emissions in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 996-1006.
    19. Huang, Cheng & Han, Ji & Chen, Wei-Qiang, 2017. "Changing patterns and determinants of infrastructures’ material stocks in Chinese cities," Resources, Conservation & Recycling, Elsevier, vol. 123(C), pages 47-53.
    20. Feng, Kuishuang & Hubacek, Klaus & Guan, Dabo, 2009. "Lifestyles, technology and CO2 emissions in China: A regional comparative analysis," Ecological Economics, Elsevier, vol. 69(1), pages 145-154, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:11761-:d:663901. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.