Evaluation On The Efficiency Of Industrial Production And Environmental Treatment In China And Its Interaction With Foreign Trade

Due to the local governments' excessive preference on economic development and vicious economic competition among provinces,the contradiction between economic growth and energy environment becoming more and more serious for a long time.Not only the supply of energy is difficult to meet the needs of economic growth,the pollutants generated in the process of economic development have greatly exceeded our environmental carrying capacity.Energy shortage and environment pollution have become a key problem of restricting further economic development of China.At the same time,foreign trade as one of the ?three carriages? to promote economic growth inevitably to aggravate China's energy and environmental pressure while promoting economic growth.At present,China's foreign trade is mainly by processing trade.However,industrial pollution is the main cause of environmental pollution in China;Industrial energy consumption accounts for the proportion of total energy consumption of more than 60%.Therefore,in this paper,we mainly take China's provincial industrial data in 2002-2014 as an example,and then analyze the interactive relationship among efficiency of industrial production sub-system,efficiency of industrial pollution treatment sub-system and foreign trade.This paper firstly introduces two-stage non-cooperative game slack-based measure(SBM)data envelopment analysis(DEA)model to evaluate the provincial environment efficiency of both industrial production and pollutant treatment in China.The results show that unlike traditional two-stage SBM-DEA model,non-cooperative game SBM-DEA model can describe the industrial efficiency more precisely.During the evaluation period,efficiency of industrial production on the provincial level is not only lower than pollution treatment efficiency,but is falling generally,especially in the Eastern area.However,efficiency of industrial production in the Central and Western area remains relatively stable;while pollution treatment efficiency is rising steadily.Further analyses indicate that the technology gap between the Central/Western area and the Eastern area is narrowing,particularly concerning pollution treatment technology.Finally,using the Panel Data Vector Autoregression(PVAR)to analyze the long-term dynamic relationship among industrial production efficiency,pollutant treatment efficiency and foreign trade,from the Impulse Response Function(IRF)and Variance Decomposition(VD)of the variables,there is the relationship of ?two-way? interaction among China's foreign trade,economic growth and pollutant treatment.Finally,the policy implications show that the rational allocation of resources to promote updating emission reduction equipment and emission reduction technology,and reduce pollutant emissions of production system,and improve the efficiency of the production system are the primary task of environmental protection in China;However we should look at the long-term,and set an actual resources and environment-friendly economic growth path in line with China's reality,rather than rely on export resources and environment intensive products to expand the scale of export trade,and promote economic growth.