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Environmental Efficiency Analysis of Listed Cement Enterprises in China

Author

Listed:
  • Fang Zhang

    (School of Economics and Management, Beihang University, Beijing 10191, China)

  • Hong Fang

    (School of Economics and Management, Beihang University, Beijing 10191, China)

  • Junjie Wu

    (Faculty of Business and Law, Leeds Beckett University, Leeds LS1 3HE, UK)

  • Damian Ward

    (Business School, University of Hertfordshire, Hatfield AL10 9EU, UK)

Abstract

China’s cement production has been the highest worldwide for decades and contributes significant environmental pollution. Using a non-radical DEA model with slacks-based measure (SBM), this paper analyzes the environmental efficiency of China’s listed cement companies. The results suggest that the average mean of the environmental efficiency for the listed cement enterprises shows a decreasing trend in 2012 and 2013. There is a significant imbalance in environmental efficiency in these firms ranging from very low to very high. Further investigation finds that enterprise size and property structure are key factors. Increasing production concentration and decreasing the share of government investment could improve the environmental efficiency. The findings also suggest that effectively monitoring pollution products can improve environmental efficiency quickly, whereas pursuit for excessive profitability without keeping the same pace in energy saving would cause a sharp drop in environmental efficiency. Based on these findings, we proposed that companies in the Chinese cement sector might consider restructuring to improve environmental efficiency. They also need to make a trade-off between profitability and environmental protection. Finally, the Chinese government should reduce ownership control and management interventions in cement companies.

Suggested Citation

  • Fang Zhang & Hong Fang & Junjie Wu & Damian Ward, 2016. "Environmental Efficiency Analysis of Listed Cement Enterprises in China," Sustainability, MDPI, vol. 8(5), pages 1-19, May.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:5:p:453-:d:69618
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    References listed on IDEAS

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    Cited by:

    1. Hongxing Tu & Wei Dai & Xu Xiao, 2022. "Study on the Environmental Efficiency of the Chinese Cement Industry Based on the Undesirable Output DEA Model," Energies, MDPI, vol. 15(9), pages 1-13, May.
    2. Karambu Kiende Gatimbu & Maurice Juma Ogada & Nancy Budambula & Samuel Kariuki, 2018. "Environmental sustainability and financial performance of the small‐scale tea processors in Kenya," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1765-1771, December.
    3. Junfeng Zhang & Jianxu Liu & Jing Li & Yuyan Gao & Chuansong Zhao, 2021. "Green Development Efficiency and Its Influencing Factors in China’s Iron and Steel Industry," Sustainability, MDPI, vol. 13(2), pages 1-15, January.
    4. Karambu Kiende Gatimbu & Maurice Juma Ogada & Nancy L. M. Budambula, 2020. "Environmental efficiency of small-scale tea processors in Kenya: an inverse data envelopment analysis (DEA) approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 3333-3345, April.
    5. Xiaoling Wang & Manyin Zhang & Jatin Nathwani & Fangming Yang, 2019. "Measuring Environmental Efficiency through the Lens of Technology Heterogeneity: A Comparative Study between China and the G20," Sustainability, MDPI, vol. 11(2), pages 1-12, January.
    6. Hongxing Tu & Wei Dai & Yuan Fang & Xu Xiao, 2022. "Environmental Regulation, Technological Innovation and Industrial Environmental Efficiency: An Empirical Study Based on Chinese Cement Industry," Sustainability, MDPI, vol. 14(18), pages 1-15, September.
    7. Jie Zhang & Zhencheng Xing & Jigan Wang, 2016. "Analysis of CO 2 Emission Performance and Abatement Potential for Municipal Industrial Sectors in Jiangsu, China," Sustainability, MDPI, vol. 8(7), pages 1-15, July.

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