Green Total Factor Productivity Growth Source

We attempted to use stochastic frontier analysis model(SFA) and introduced labor, capital, energy consumption and carbon dioxide emissions into the trans-log form of the production function to capture technology change (TC), the tech. efficiency change (TEC), the size efficiency change (SEC) and the factor allocation efficiency change (AEC) in the green TFP. We found that the growth rate of green TFP in our industry is significant since the early90s. The technology change and the factor allocation efficiency are the main sources of the TFP growth. The green TFP with4input factors is lower than the traditional2factors model. It is also lower in the TC, TEC and SEC with the exception that the AEC is higher. Capital increasing is an important source of the economy growth, but it has been significantly reduced and is disappearing. Energy consumption is another source of economy growth, but the carbon dioxide it introduced has greater negative impact which completely offset the contribution of energy. We finally find that the intensive-oriented approach is the long-term and sustainable way for economy growth.