Estimation And Analysis Of Total Factor Productivity Based On Environment Perspective

Since reform and opening up in China, we have gained a great development of economic, industrialization and urbanization. However, environment has been harmed seriously. “Fog and Haze”, “Air pollution” can be seen as sensitive vocabulary. Environment problems have harmed our daily life and healthy. It is high time that we should slow down our steps of economic growth and protect our environment. Total Factor Productivity is index of efficiency of input and output and it is core of economic growth. If we want to pursue for good economic growth, we should add environment to Total Factor Productivity. Total Factor Productivity based on environment perspective is a proper index for measuring economic growth of countries and areas.First, this paper creates an environment factor using wastewater emissions, SO2 emissions, industrial waste gas emissions and industrial solid waste emissions through entropy evaluation method. The reciprocal environment factor is put into DEA model as “bad” output and real GDP is put into the model as “good” output. The capital K, Labor L and Energy E are viewed as input index. And we calculate Total Factor Productivity based on environment perspective and analyze its change from 2000 to 2013 using the method of DEA-Malmquist Index.Then, using data of TFP based on environment perspective, we make a region difference and convergence analysis.The results show that TFP based on environment perspective is lower that traditional TFP and the growth of environment TFP comes from the growth of technology progress. There exists σ convergence, absolute β convergence and conditional β convergence in the eastern region. The TFPs based on environment perspective of regions in China differ a lot.