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Abstract We evaluate the potential of China's pendent carbon tax policy in CO 2 (carbon dioxide) mitigations from the perspective of interfactor/interfuel substitution. The analysis is conducted by region given that interfactor/interfuel elasticities of substitution are often discrepant among different areas. The results indicate that nearly 3% reduction in CO 2 emissions from the 2010 level can be achieved by levying a carbon tax at 50 Yuan/tonne. The inelastic demand for fuel inputs in the face of rapid processes for industrialization and urbanization limits the effectiveness of China's carbon tax to a great extent. Specifically, a total amount of more than 130 million tonnes CO 2 emissions can be reduced in the East coast and Southwest areas, and the areas of Municipalities and Northwest could also achieve CO 2 mitigation by more than 3%. In contrast, the areas of Midland and Northwest can merely cut their CO 2 emissions by 1.6% and 0.92%, respectively.

Abstract In this paper, we try to investigate the effects of China's Western Development Strategy (WDS), carried out since 2000, on local ecological economic performance. We first construct an eco-productivity index that incorporates economic growth, inputs saving, and emissions reduction within an integrated analysis framework. Then the eco-productivity scores of 30 administrative provinces in China's over 1996–2015 are evaluated with sequential data envelopment analysis technique. The results indicate the eco-productivity score in the east and central area (ECA) declines continuously over the whole study period, while that in the west area (WA) increases persistently since 2000 when the WDS was launched. We infer from the narrowing gap of eco-productivity scores between the two areas that China's WDS implementation has promoted local ecological economic development to a certain extent. In subsequent, this preliminary inference is further verified by conducting an empirical test.

Energy saving and emissions reduction has recalibrated China’s economic development mode to a more sustainable way. In this paper, we construct a novel total factor productivity (TFP) index using a sub-vector enhanced hyperbolic distance function, which simultaneously credits for an expansion in economic output along with contractions in energy input and undesirable output. Subsequently, this index is employed to evaluate the TFP change for 30 provincial regions in China during 2006–2015. The results indicate that China’s productivity considering energy saving and emissions reduction experiences a gradual improvement shifting from decline to increase throughout this decade, and the amelioration can mainly be attributed to the efficiency improvements from the east regions, while the contributions from technical change component will not emerge until 2013 due to insufficient energy and environmental R&D investments. Finally, some policy recommendations are also put forward on how to enhance China’s productivity.

Low economic profit usually reduces the incentive of producers to operate their wastewater treatment technologies effectively. It is necessary to investigate the performance of environmentally friendly production technologies that reduce wastewater discharges and generate economic outputs simultaneously (EPTWs) in China over the past decade. In this paper, we apply the Malmquist-Luenberger productivity index widely used in the field of economics to evaluate the productivity change of EPTWs for 30 administrative provinces in China during 2003–2015. The pathways of the productivity change are further identified by decomposing the productivity index into two components: technological change and technical efficiency change. The results show that China’s environmental productivity index associated with wastewater reduction had undergone a downward trend, and evident spatial disparities are observed among the 30 provincial regions. Moreover, the changes of China’s environmental productivity over the whole studied period can mainly be attributed to technological progress, while the technical efficiency component has contributed little, although its annual contributing rate is in an increasing trend.

Abstract In this study, we develop a novel analysis framework for evaluating the effects of resource reallocation from the correction of factor market distortion (FMD) on total factor productivity (TFP) gains. We first measure FMD in China's heavy industry sector from 1995 to 2012, and then investigate the effects of resource reallocation from FMD correction by using the price elasticity of factor demands as a link, along with its potential TFP gains. The results indicate that: (1) Taking the price of capital as a reference, the prices of labour and energy in the study period were relatively higher to different extents. (2) If current FMD were fully corrected, the labour input in China's heavy industry sector would increase by 25.37%, whereas capital and energy inputs would decrease by 18.51% and 10.57%, respectively. (3) The resource reallocation effects resulting from current FMD correction will bring about significant TFP improvement (by 8.55%) in China's heavy industry sector, and there are evident industrial differences and stage characteristics for these promoting effects.