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Productivity and Eenergy Efficiency of Chinese Industries

In: Empirical Research on Environmental Policies in China

Author

Listed:
  • Takatoshi Watanabe

    (Aichi Gakuin University)

  • Kiyoshi Fujikawa

    (Aichi Gakuin University)

Abstract

This paper estimates the growth rate of total factor productivity (TFP) by the industrial sector in China during the early 2000s and examines the relationship between TFP growth and improvements in energy efficiency and reductions in CO2 emissions. The estimation periods were 2002–2007 and 2007–2012, and the level of TFP growth was generally positive in both periods. However, if we take transportation machinery and electronics and telecommunications equipment as the leading sectors of the Chinese economy, relatively high TFP growth rates of 1.75% and 1.26%, respectively, were estimated for the first period, but they declined considerably to 1.11% and 0.01%, respectively, in the second period. The decline in the TFP growth rate in the second period may be attributed to the impact of the Lehman Brothers collapse. The global recession reduced demand for exports; however, China’s economic stimulus measures, which included large-scale public investment, may have led to an excess of capital. Regarding the relationship between TFP and energy efficiency, it was observed that the higher the TFP growth rate, the higher the energy productivity of the industry. However, no clear correlation was found between the TFP growth rate and CO2 emissions. This may be because, in this study, the CO2 emissions were assumed to be the direct emissions of the industry in question. In the next study, we will attempt an analysis that also considers indirect CO2 emissions generated during power generation.

Suggested Citation

  • Takatoshi Watanabe & Kiyoshi Fujikawa, 2023. "Productivity and Eenergy Efficiency of Chinese Industries," Springer Books, in: Kiyoshi Fujikawa (ed.), Empirical Research on Environmental Policies in China, chapter 0, pages 77-95, Springer.
  • Handle: RePEc:spr:sprchp:978-981-99-5957-0_5
    DOI: 10.1007/978-981-99-5957-0_5
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