Empirical Research of China’s Environmentally Adjusted Total Factor Productivity
- DOI
- 10.2991/aebmr.k.201211.085How to use a DOI?
- Keywords
- Total factor productivity, environmental factor adjustment, slow growth accounting
- Abstract
Total factor productivity is a key indicator for achieving sustainable economic growth and high-quality development in China. Traditional TFP calculations do not include natural resources and environmental pollution into the accounting framework, and the calculated TFP is usually overestimated. This paper calculates the environmentally adjusted total factor productivity (EATFP). The results showed that from 2001 to 2007, the unadjusted TFP growth rate was relatively high, mainly due to the technological progress brought about by China’s institutional reforms such as opening up and joining the WTO. Since 2008, in response to the international financial crisis, China has implemented a four trillion stimulus policy, which has led to a reduction in the efficiency of resource allocation, a low effective investment ratio, and a large decline in total factor productivity growth. The total factor productivity adjusted for environmental factors maintained a low growth rate even during the period 2001-2007 when the reform dividend was continuously released, indicating that China’s economy has always been extensively developed, and the rapid economic growth is at the cost of environmental damage.
- Copyright
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Wei Tang AU - Lili Zhang AU - Rui Tang PY - 2020 DA - 2020/12/14 TI - Empirical Research of China’s Environmentally Adjusted Total Factor Productivity BT - Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020) PB - Atlantis Press SP - 505 EP - 509 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.201211.085 DO - 10.2991/aebmr.k.201211.085 ID - Tang2020 ER -