Analysis On Environmental Total Factor Productivity Change And Its Influence Factors In Industry Of China

With the deepening contradiction between the development of economy and environment, the necessity of the research,which put environment factor into the total factor productivity of content,has become the consensus of the academic circles. Domestic and international research literature about environmental efficiency or environmental total factor productivity,has been increasing on the industry, regional, national. However, there is little research literature and content about decomposition and measure of industrial environment total factor productivity change from the point of view of the elements, and only this kind of research can refine out main ingredients of promoting environmental total factor productivity change, analyse the origin of influence factors and put forward the efficient measures, which promote industrial environment total factor productivity growth.Firstly,we decompose the TFP change into two parts-TFP change of input and TFP change of environment controlling.Then,in this two kinds of TFP change, we analyze their technical change and efficiency change.Considering the main two pollutants in industrial production ("bad" output)——waste gas (SO2) and waste water (COD), we calculate the growth rate of industrial environmental total factor productivity and decompose the components of productivity change, selecting the industrial economic data of30provinces from year2000to2010in China. Furthermore, we will do an empirical analysis of environmental factors affecting total factor productivity change. In the first measuring part, we adopt the Luenberger Productivity Index approach(L index) based on measurement of efficiency loss(SBI) and obtain an average growth rate0.025of industrial environmental total factor productivity with an reverse N shape of changing trend from2000-2005, and a steady growth trend from2005-2010. In this paper,we decompose the environmental total factor productivity into input using productivity and pollution controlling productivity, and the changing trend of them are same as the above TFP. Behind the three kinds of productivity change, technical change contributes2/3as the main force and the technical change of labor using is leading force in input using technical change. Through our measurement, we find that the technical change of pollution controlling is the main influencing factor in industrial environmental TFP growth. On the regional differences,productivity change value of eastern area, central area and western area presents a ladder status, meaning that the productivity of eastern area is large than central area and that of central area is large than western area.Secondly,we proceed theoretical and empirical analysis to environmental TFP.In the empirical analysis part of influencing factors to industrial environmental TFP, we establish two-stage panel data regression models. Firstly, we select enterprise property, technology research and development activities of enterprises, pollution controlling act, foreign direct investment as explanatory variables and rate of technical progress in pollution control as depended variable. Correlation coefficients of these explanatory variables are-0.048,-0.645,0.0319,-0.0031.Then, we establish the regression model in which selecting enterprise property, technology research and development activities of enterprises, pollution controlling to explain environmental total factor productivity. Regression results indicate that high proportion of state-owned industrial enterprise and technical activities of large and medium industrial enterprises are not conducive to TFP growth but pollution controlling investment can promote TFP growth.According to the results of the empirical analysis, we finally made the countermeasures of promoting China’s environmental total factor productivity growth in industry.