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A productivity analysis considering environmental pollution and diseases in China

Author

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  • Huijuan Cao
  • Hidemichi Fujii
  • Shunsuke Managi

Abstract

Environmental pollution and human health problems are becoming serious issues in China. This research focuses on regional differences in productive inefficiencies and attempts to clarify the determinants of inefficiency, accounting economic, environmental and health-related factors. Our dataset includes information of 29 areas in China from 2003 to 2009. We find that after accounting for environmental pollution and health impacts, the productive inefficiency of the examined areas reduced; this result holds for both the national and provincial levels. Our results imply that government efforts to improve social welfare should emphasize increases in foreign direct investment and private medical expenditures. JEL codes: I15, O44, O47, R11 Copyright Cao et al. 2015

Suggested Citation

  • Huijuan Cao & Hidemichi Fujii & Shunsuke Managi, 2015. "A productivity analysis considering environmental pollution and diseases in China," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-19, December.
    • Handle: RePEc:spr:jecstr:v:4:y:2015:i:1:p:1-19:10.1186/s40008-015-0012-9
    DOI: 10.1186/s40008-015-0012-9
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    References listed on IDEAS

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    1. Fujii, Hidemichi & Managi, Shunsuke & Kaneko, Shinji, 2019. "Decomposition analysis of air pollution abatement in China: Empirical study for ten industrial sectors from 1998 to 2009," MPRA Paper 92234, University Library of Munich, Germany.
    2. Shunsuke Managi & Shinji Kaneko, 2006. "Productivity of market and environmental abatement in China," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 7(4), pages 459-470, December.
    3. Fujii, Hidemichi & Managi, Shunsuke & Matousek, Roman, 2014. "Indian bank efficiency and productivity changes with undesirable outputs: A disaggregated approach," Journal of Banking & Finance, Elsevier, vol. 38(C), pages 41-50.
    4. Filmer, Deon & Hammer, Jeffrey & Pritchett, Lant, 1998. "Health policy in poor countries : weak links in the chain," Policy Research Working Paper Series 1874, The World Bank.
    5. Barros, Carlos Pestana & Managi, Shunsuke & Matousek, Roman, 2012. "The technical efficiency of the Japanese banks: Non-radial directional performance measurement with undesirable output," Omega, Elsevier, vol. 40(1), pages 1-8, January.
    6. Fujii, Hidemichi & Kaneko, Shinji & Managi, Shunsuke, 2010. "Changes in environmentally sensitive productivity and technological modernization in China's iron and steel industry in the 1990s," Environment and Development Economics, Cambridge University Press, vol. 15(4), pages 485-504, August.
    7. Hidemichi Fujii & Jing Cao & Shunsuke Managi, 2015. "Decomposition of Productivity Considering Multi-environmental Pollutants in Chinese Industrial Sector," Review of Development Economics, Wiley Blackwell, vol. 19(1), pages 75-84, February.
    8. Yanzhong Wang, 2007. "Development of the New Rural Cooperative Medical System in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 15(4), pages 66-77, July.
    9. Zhang, Wei & Bansback, Nick & Anis, Aslam H., 2011. "Measuring and valuing productivity loss due to poor health: A critical review," Social Science & Medicine, Elsevier, vol. 72(2), pages 185-192, January.
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    Cited by:

    1. Shunsuke Managi & George Halkos, 2015. "Production analysis in environmental, resource, and infrastructure evaluation," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-4, December.
    2. Zuoxiang Zhao, 2017. "Measurement of production efficiency and environmental efficiency in China’s province-level: a by-production approach," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(4), pages 735-759, October.

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    More about this item

    Keywords

    Environmental pollution; Disease; Regional disparity; China; Weighted Russell directional distance function;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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