Measurement & Decomposition And Factor Analysis Of China’s Industrial Efficiency Under The Environmental Perspective

As the rapidly advance of industrialization have promoted the economic to a High speed state in China, however, the low efficiency and extensive growth mode has brought about serious negative impact on our society. Therefore, we need to consider the effect of industrial production and environmental governance synthetically when we evaluate the efficiency of China’s industry, on that way, we can avoid underestimating the industrial production efficiency resulting in economic growth of higher environmental damage cost, and underestimating the environmental governance efficiency resulting in reduction cost of greater economic losses.Based on the data of our country that contains 30 provinces or regions from 1998 to 2012, this paper has measured the industrial efficiency, industrial productivity and environmental governance efficiency by building a network-DEA model, and the paper has analyzed the relationship among the three kinds of Efficiency by using static comparative method and dynamic comparative method. According the efficiency value measured by the network-DEA model, the paper has studied the size of the effect on the variables to China’s industrial efficiency, while the variables contains the technology (technological innovation and information level), the institutional factors (open level, market level and nationalization level), the structure factors (heavy level and scale level) and the influence of residents’ consumption level. We have got the following conclusion. Firstly, China’s industrial production efficiency had changed small and only increased slightly from 1998 to 2012. Secondly; the Environmental governance efficiency levels had increased significantly, and the growth had promoted the industrial efficiency level. Thirdly, this paper further studies the difference effects of the variable. Technical factors have a positive effect on promoting China’s industrial efficiency. However, the structure factor is becoming a obstacles to our further industrialization. Moreover, with the improvement of living standard, people are more willing to participate in environmental governance.