Development of an SBM-ML model for the measurement of green total factor productivity: The case of pearl river delta urban agglomeration

By Ye Li, Yiyan Chen. Renewable & Sustainable Energy Reviews, 2021

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Abstract China has created the rapid development of the economy, but it has also negatively impacted the ecosystem. In China's affluent and innovative pearl river delta urban agglomeration (PRDUA), how to balance the relationship between economic development and environmental protection is related to the realization of local green development strategy. Consequently, to carry out green development more accurately and scientifically, the primary task is to conduct scientific research and judge the relationship among regional resources, environment, and economy. Therefore, it's of tremendous significance to study the green total factor productivity (GTFP) of the PRDUA, including resources and environmental factors. Combining the fixed Malmquist-Luenberger (ML) index and the slack based measure (SBM) model with undesirable output, this paper proposes a novel method, called slack based measure-Malmquist-Luenberger (SBM-ML) model, to measure GTFP. This method was used to measure the GTFP of the PRDUA from 2005 to 2018 and analyzes its changes from time and space dimensions. The results show that: from the perspective of time, the GTFP of all cities in the PRDUA increased in a wavelike increasing trend during the sample period, and the change of the annual average GTFP of the PRDUA can be roughly divided into four stages. From the perspective of space, the GTFP of Shenzhen has been at the top-level during the sample period. Meanwhile, the disparity of GTFP between cities in PRDUA becomes narrowing in the overall trend. Finally, according to the empirical results of the GTFP of the PRDUA, this paper puts forward targeted policy recommendations to facilitate greener development in the PRDUA.

Subfields: Economics and Econometrics, Environmental Engineering, Global and Planetary Change

View Paper: https://www.semanticscholar.org/paper/5856e914885c6e1db61af50539b8faeff823135e