Research On Industrial Environmental Efficiency Of Costal Economic Belt In Liaoning Province

Environmental efficiency is an essential element of eco-efficiency. It playsan important role in coordinating the relationship between regional economy andenvironment. The coastal economic belt in Liaoning province is a vital industrial baseof China. This district got a great developing opportunity in the national strategy ofrevitalizing northeast China. However, this area is suffering from seriousenvironmental problems. Thus, it is meaningful to coordinate economy andenvironment for the sustainable development of this area. First, this paper measuresits industrial environmental efficiency from year2001to2010using data envelopeanalysis (DEA) and stochastic frontier analysis (SFA), and compares it with industrialeconomic efficiency. Then, we use the estimated coefficient to compute outputefficiency of each input. Finally, we identify the significant factors that influenceindustrial environmental efficiency with Tobit regress model. The result indicates:1. During2001-2010, the average industrial environmental efficiency of coastaleconomic belt in Liaoning province increased from0.18to0.44. Dandong, Yingkou,Jinzhou’s increased fast whereas Dalian and Jinzhou’s increased slowly. Huludao’swas the lowest. Comparing the industrial economic efficiency with environmentalefficiency, the gap between them grew larger while the ratio between them wasbecoming smaller, indicating industrial environmental efficiency grew faster. Thecorrelation analysis showed the two kinds of efficiencies had significant relation.2. The analysis on output elestisity of each input shows that: traditional inputs(including labor and fixed capital) promted industrial economic increase of coastaleconomic belt in Liaoning province (except Panjin). They were most useful for Dalianand less useful for Dandong, Jinzhou, Yingkou and Huludao, whereas it plays anegative role in Panjin. The output elestisity of labor was negative which means laborin industrial department was more than enough and should be cut back and transferredto the third industry. The fixed capital played a vital part to push industrial economyand its utility was expanding, so this district should invest more capital in industry.Environmental cost was also important for Dalian, Panjin, Huludao and Yingkou’s industrial economy, meaning the more waste discharged, the better economy would be.Dandong and Jinzhou behaved well in that their output elestisity of environmentalcost is negative, meaning their economic increase discharged less environmentalwaste as industrial economy increases.3. From Tobit regress, it is found that factors that significantly influenced industrialenvironmental efficiency were economic scale, structure of ownership, size ofenterprises, hi-tech industry and organic composition of capital. The growth of GDP,the decline of the ratio of high-and-medium-sized enterprises, the rise of hi-techindustry proportion all helps to promote industrial environmental efficiency. Thedecrease of the ratio of nation-owned industrial production reduced environmentalefficiency. Other factors of pollution control, heavy industry proportion, foreign investdid not play significant roles.Based on the results we have got, the following suggestions are put forward toupgrade industrial environmental efficiency of coastal economic belt in Liaoningprovince.(1) Support small business.(2) Promote high-tech industries, but to strictlyscrutinize and control dangerous waste generation and handling.(3) Raise the level ofproduction technology. Reduce the amount of labor and expand capital investment.(4)Invest more in pollution control.(5) Strengthen requirements and supervision onenvironmental emission of non-state-owned enterprises.(6) Avoid the introduction offorerign polluting enterprises.