Abstract
Industry is the largest consumer of energy and CO2 emission sector. Recognizing the heterogeneity of total factor CO2 emission performances between various industrial sub-sectors is crucial for governments, to enable the compilation of effective industrial CO2 emission reduction policies. To determine the CO2 emission characteristics throughout the industry sectors, Liaoning province was selected as typical heavy industry province for analysis. Based on the input-output data of 37 industrial sub-sectors from 2003 to 2012, the industrial total factor CO2 emission efficiencies and performances were analyzed through data envelopment analysis (DEA) and the Malmquist-Luenberger productivity index. The results show that most sub-sectors have low total factor CO2 emission efficiencies, which indicates that it is difficult for Liaoning’s industry to reduce carbon emissions. The total factor CO2 emission performance of the overall industry declined by 1.85% per year during the study period; this decrease was mainly related to a lack in implementing technical changes. However, efficiency change showed a progressive trend. These findings indicate that to realize carbon reduction in heavy industry provinces within China, it is necessary to focus on expediting technical change.
Similar content being viewed by others
Abbreviations
- DEA:
-
Data envelopment analysis
- ML:
-
Malmquist-Luenberger
- TFCEP:
-
Total factor CO2 emission performance
- TC:
-
Technical change
- EC:
-
Efficiency change
- PTEC:
-
Pure technical efficiency change
- SEC:
-
Scale efficiency change
- TFCEE:
-
Total factor CO2 emission efficiency
References
Bureau of Liaoning Statistics. (2013). Liaoning statistical yearbook. Beijing: China Statistics Press.
Cai, W., Hui, J., Wang, C., Zheng, Y., Zhang, X., Zhang, Q., & Gong, P. (2018). The lancet countdown on PM2.5 pollution-related health impacts of China’s projected carbon dioxide mitigation in the electric power generation sector under the Paris agreement: A modelling study. The Lancet Planetary Health, 2(4), e151–e161.
Chang, T.-P., & Hu, J.-L. (2010). Total-factor energy productivity growth, technical progress, and efficiency change: An empirical study of China. Applied Energy, 87(10), 3262–3270.
Chang, Y. T., Zhang, N., Danao, D., & Zhang, N. (2013). Environmental efficiency analysis of transportation system in China: A non-radial DEA approach. Energy Policy, 58, 277–283.
Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429–444.
Chung, Y. H., Fare, R., & Grosskopf, S. (1997). Productivity and undesirable outputs: A directional distance function approach. Journal of Environmental Management, 51(3), 229–240.
ClÒ, S. (2009). The effectiveness of the EU Emissions Trading Scheme. Climate Policy, 9(3), 227–241.
Fan, M., Shao, S., & Yang, L. (2015). Combining global Malmquist–Luenberger index and generalized method of moments to investigate industrial total factor CO2 emission performance: A case of Shanghai (China). Energy Policy, 79, 189–201.
Färe, R., Grosskopf, S., Norris, M., & Zhang, Z. (1994). Productivity growth, technical progress, and efficiency change in industrialized countries. The American Economic Review, 84(1), 66–83.
Feng, C., Huang, J. B., & Wang, M. (2018). Analysis of green total-factor productivity in China’s regional metal industry: A meta-frontier approach. Resources Policy, 58, 219–229.
Geng, Y., Zhao, H., Liu, Z., Xue, B., Fujita, T., & Xi, F. (2013a). Exploring driving factors of energy-related CO2 emissions in Chinese provinces: A case of Liaoning. Energy Policy, 60, 820–826.
Geng, Y., Sarkis, J., Wang, X. B., Zhao, H. Y., & Zhong, Y. G. (2013b). Regional application of ground source heat pump in China: A case of Shenyang. Renewable & Sustainable Energy Reviews, 18, 95–102.
Griffith, R., Redding, S., & Van Reenen, J. (2000). Mapping the two faces of R&D: Productivity growth in a panel of OECD industries, Centre for Economic Policy Research (No. 2457). Discussion Paper.
Griffith, R., Redding, S., & Reenen, J. V. (2004). Mapping the two faces of R&D: Productivity growth in a panel of OECD industries. Review of Economics and Statistics, 86(4), 883–895.
Guan, D., Meng, J., Reiner, D. M., Zhang, N., Shan, Y., Mi, Z., et al. (2018). Structural decline in China’s CO2 emissions through transitions in industry and energy systems. Nature Geoscience, 11(8), 551–555.
He, Y. X., Zhang, S. L., Zhao, Y. S., Wang, Y. J., & Li, F. R. (2011). Energy-saving decomposition and power consumption forecast: The case of Liaoning province in China. Energy Conversion and Management, 52(1), 340–348.
Hu, J.-L., & Wang, S.-C. (2006). Total-factor energy efficiency of regions in China. Energy Policy, 34(17), 3206–3217.
IPCC (Intergovernmental Panel on Climate Change) (2006). 2006 IPCC guidelines for national greenhouse gas inventories. Intergovernmental Panel on Climate Change.
Jian, J., Jianxiang, W., & Shiyun, W. (2013). Malmquist-based research on total factor productivity of Liaoning’s modern service industry. International Journal of Digital Content Technology and its Applications, 7(2), 239–246.
Kaneko, S., Fujii, H., Sawazu, N., & Fujikura, R. (2010). Financial allocation strategy for the regional pollution abatement cost of reducing sulfur dioxide emissions in the thermal power sector in China. Energy Policy, 38(5), 2131–2141.
Kaya, Y., & Yokobori, K. (1999). Environment, energy and economy: Strategies for sustainability. Delhi: Bookwell Publications.
Kumar, S. (2006). Environmentally sensitive productivity growth: A global analysis using Malmquist–Luenberger index. Ecological Economics, 56(2), 280–293.
Li, J., Zhang, J., Gong, L., & Miao, P. (2015). Research on the total factor productivity and decomposition of Chinese coastal marine economy: Based on DEA-Malmquist index. Journal of Coastal Research, 73, 283–289.
Li, M., Mi, Z., & Wei, Y. M. (2018). Assessing the policy impacts on non-ferrous metals industry’s CO2 reduction: Evidence from China. Journal of Cleaner Production, 192, 252–261.
Liang, S., Liu, Z., Crawford-Brown, D., Wang, Y., & Xu, M. (2014). Decoupling analysis and socioeconomic drivers of environmental pressure in China. Environmental Science & Technology, 48(2), 1103–1113.
Lin, B., & Chen, X. (2019). Evaluating the CO2 performance of China’s non-ferrous metals industry: A total factor meta-frontier Malmquist index perspective. Journal of Cleaner Production, 209, 1061–1077.
Lin, B., & Fei, R. (2015). Regional differences of CO2 emissions performance in China’s agricultural sector: A Malmquist index approach. European Journal of Agronomy, 70, 33–40.
Lin, B., & Wang, X. (2015). Carbon emissions from energy intensive industry in China: Evidence from the iron & steel industry. Renewable & Sustainable Energy Reviews, 47, 746–754.
Liu, Z., Geng, Y., Lindner, S., & Guan, D. (2012). Uncovering China’s greenhouse gas emission from regional and sectoral perspectives. Energy, 45(1), 1059–1068.
Liu, Z., Guan, D., Wei, W., Davis, S. J., Ciais, P., Bai, J., et al. (2015a). Reduced carbon emission estimates from fossil fuel combustion and cement production in China. Nature, 524(7565), 335–338.
Liu, Z., Guan, D., Moore, S., Lee, H., Su, J., & Zhang, Q. (2015b). Climate policy: Steps to China’s carbon peak. Nature, 522(7556), 279–281.
Lugovoy, O., Feng, X.-Z., Gao, J., Li, J.-F., Liu, Q., Teng, F., et al. (2018). Multi-model comparison of CO2 emissions peaking in China: Lessons from CEMF01 study. Advances in Climate Change Research, 9(1), 1–15.
Makarova, A. S., Jia, X., Kruchina, E. B., Kudryavtseva, E. I., & Kukushkin, I. G. (2019). Environmental performance assessment of the chemical industries involved in the Responsible Care® Program: Case study of the Russian Federation. Journal of Cleaner Production, 222, 971–985.
Mielnik, O., & Goldemberg, J. (1999). Communication the evolution of the “carbonization index” in developing countries. Energy Policy, 27(5), 307–308.
Nabavieh, A., Gholamiangonabadi, D., & Ahangaran, A. A. (2015). Dynamic changes in CO2 emission performance of different types of Iranian fossil-fuel power plants. Energy Economics, 52, 142–150.
National Bureau of Statistics of China. (2008). Annotations for China industry classification. China Statistic Press, Beijing, China.
National Development Reform and Commission (2015). Enhanced actions on climate change: China’s intended nationally determined contributions. Available at http://www.ndrc.gov.cn/xwzx/xwfb/201506/t20150630_710204.html.
Oh, D. H., & Heshmati, A. (2010). A sequential Malmquist–Luenberger productivity index: Environmentally sensitive productivity growth considering the progressive nature of technology. Energy Economics, 32(6), 1345–1355.
Parisi, M. L., Schiantarelli, F., & Sembenelli, A. (2006). Productivity, innovation and R&D: Micro evidence for Italy. European Economic Review, 50(8), 2037–2061.
People’s Government of Liaoning Province (2015). The Key Technology for Energy Conservation and Emissions Reduction Directory. The government of Liaoning province, http://www.ln.gov.cn/qmzx/jnjpjsml/20141_111238/index.html.
Ramanathan, R. (2002). Combining indicators of energy consumption and CO2 emission: A cross-country comparison. Int. J. Glob. Energy Issues, 17(3), 214–227.
Shan, Y., Liu, J., Liu, Z., Xu, X., Shao, S., Wang, P., & Guan, D. (2016). New provincial CO2 emission inventories in China based on apparent energy consumption data and updated emission factors. Applied Energy, 184, 742–750.
Shephard, R. W. (1970). Theory of cost and production. Princeton: Princeton University Press.
Sueyoshi, T., & Goto, M. (2011). DEA approach for unified efficiency measurement: Assessment of Japanese fossil fuel power generation. Energy Economics, 33(2), 292–303.
Sueyoshi, T., & Goto, M. (2013). A comparative study among fossil fuel power plants in PJM and California iso by dea environmental assessment. Energy Economics, 40, 130–145.
Sueyoshi, T., Goto, M., & Sugiyama, M. (2013). DEA window analysis for environmental assessment in a dynamic time shift: Performance assessment of U.S. coal-fired power plants. Energy Economics, 40, 845–857.
Sun, J. W. (2005). The decrease of CO2 emission intensity is decarbonization at national and global levels. Energy Policy, 33(8), 975–978.
Sun, M., Wang, Y., Shi, L., & Klemeš, J. J. (2018). Uncovering energy use, carbon emission and environmental burdens of pulp and paper industry: A systematic review and meta-analysis. Renewable and Sustainable Energy Reviews, 92, 823–833.
Tu, Z. G. (2008). The coordination of industrial growth with environment and resource. Economic Research Journal, 2(93–105), 431–445.
Wang, N., & Choi, Y. (2019). Comparative analysis of the energy and CO2 emission performance and technology gaps in the agglomerated cities of China and South Korea. Sustainability, 11(2), 475.
Wang, K., Wang, C., Lu, X., & Chen, J. (2007). Scenario analysis on CO2 emissions reduction potential in China’s iron and steel industry. Energy Policy, 35(4), 2320–2335.
Wang, K., Zhang, X., Wei, Y.-M., & Yu, S. (2013). Regional allocation of CO2 emissions allowance over provinces in China by 2020. Energy Policy, 54, 214–229.
Wu, A.-H., Cao, Y.-Y., & Liu, B. (2013). Energy efficiency evaluation for regions in China: An application of DEA and Malmquist indices. Energy Efficiency, 7(3), 429–439.
Wu, J., Zhu, Q., Yin, P., & Song, M. (2015). Measuring energy and environmental performance for regions in China by using DEA-based Malmquist indices. Operational Research, 17(3), 715–735.
Wu, J., Zhu, Q., Chu, J., Liu, H., & Liang, L. (2016). Measuring energy and environmental efficiency of transportation systems in China based on a parallel DEA approach. Transportation Research Part D: Transport and Environment, 48, 460–472.
Wu, J., Chu, J., An, Q., Sun, J., & Yin, P. (2018). Resource reallocation and target setting for improving environmental performance of DMUs: An application to regional highway transportation systems in China. Transportation Research Part D: Transport and Environment, 61, 204–216.
Xi, F., Geng, Y., Chen, X., Zhang, Y., Wang, X., Xue, B., et al. (2011). Contributing to local policy making on GHG emission reduction through inventorying and attribution: A case study of Shenyang, China. Energy Policy, 39(10), 5999–6010.
Xian, Y., Yang, K., Wang, K., Wei, Y. M., & Huang, Z. (2019). Cost-environment efficiency analysis of construction industry in China: A materials balance approach. Journal of Cleaner Production.
Xie, B. C., Shang, L. F., Yang, S. B., & Yi, B. W. (2014). Dynamic environmental efficiency evaluation of electric power industries: Evidence from OECD (Organization for Economic Cooperation and Development) and BRIC (Brazil, Russia, India and China) countries. Energy, 74, 147–157.
Yang, L., & Wang, K. L. (2013). Regional differences of environmental efficiency of China’s energy utilization and environmental regulation cost based on provincial panel data and DEA method. Mathematical and Computer Modelling, 58(5–6), 1074–1083.
Yao, X., Guo, C., Shao, S., & Jiang, Z. (2016). Total-factor CO2 emission performance of China’s provincial industrial sector: A meta-frontier non-radial Malmquist index approach. Applied Energy, 184, 1142–1153.
Yuan, P., Liang, W., & Cheng, S. (2012). The margin abatement costs of CO2 in Chinese industrial sectors. In D. Zeng (Ed.), 2011 2nd International Conference on Advances in Energy Engineering (Vol. 14, pp. 1792-1797, Energy Procedia).
Zachariadis, M. (2003). R&D, innovation, and technological progress: A test of the Schumpeterian framework without scale effects. Canadian Journal of Economics/Revue canadienne d'économique, 36(3), 566–586.
Zeng, S., Jiang, X., Su, B., & Nan, X. (2018a). China’s SO2 shadow prices and environmental technical efficiency at the province level. International Review of Economics & Finance, 57, 86–102.
Zeng, S., Jiang, C., Ma, C., & Su, B. (2018b). Investment efficiency of the new energy industry in China. Energy Economics, 70, 536–544.
Zhang, N., & Choi, Y. (2013). Total-factor carbon emission performance of fossil fuel power plants in China: A metafrontier non-radial Malmquist index analysis. Energy Economics, 40, 549–559.
Zhang, N., & Wei, X. (2015). Dynamic total factor carbon emissions performance changes in the Chinese transportation industry. Applied Energy, 146, 409–420.
Zhang, Z., Qu, J., & Zeng, J. (2008). A quantitative comparison and analysis on the assessment indicators of greenhouse gases emission. Journal of Geographical Sciences, 18(4), 387–399.
Zhang, N., Zhou, P., & Kung, C.-C. (2015). Total-factor carbon emission performance of the Chinese transportation industry: A bootstrapped non-radial Malmquist index analysis. Renewable & Sustainable Energy Reviews, 41, 584–593.
Zhou, P., Ang, B. W., & Han, J. Y. (2010). Total factor carbon emission performance: A Malmquist index analysis. Energy Economics, 32(1), 194–201.
Zhou, P., Ang, B. W., & Wang, H. (2012). Energy and CO2 emission performance in electricity generation: A non-radial directional distance function approach. European Journal of Operational Research, 221(3), 625–635.
Zhu, X., Chen, Y., & Feng, C. (2018). Green total factor productivity of China’s mining and quarrying industry: A global data envelopment analysis. Resources Policy, 57, 1–9.
Zofío, J. L., & Prieto, A. M. (2001). Environmental efficiency and regulatory standards: The case of CO2 emission from OECD industries. Resource and Energy Economics, 23(1), 63–83.
Acknowledgments
This work is supported by the [National Nature Science Foundation of China] under Grant [number 41473076, 41603068, and 41501605]; [CAS President’s International Fellowship for Visiting Scientists Project] under Grant [number 2017VCB0004].
Author information
Authors and Affiliations
Corresponding authors
Ethics declarations
Conflict of interest
All authors have read and approve the paper. No part of this paper has been published or submitted elsewhere. The authors declare that they have no conflict of interest.
Additional information
Publisher’s note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Wang, L., Xi, F., Yin, Y. et al. Industrial total factor CO2 emission performance assessment of Chinese heavy industrial province. Energy Efficiency 13, 177–192 (2020). https://doi.org/10.1007/s12053-019-09837-4
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s12053-019-09837-4