Efficiency measurement and inefficiency environmental factors of China’s green economy
Efficiency measurement and inefficiency environmental factors of China’s green economy

Summary/Abstract: This paper uses the projection pursuit method (PP method) to construct a comprehensiveoutput indicator and uses the heterogeneous stochastic frontier model (HSFM model)to calculate China’s green economy efficiency and analyse effects of environmental factorson the inefficiency fluctuation of green economy. Conclusions are drawn as follows:(1) The average value of China’s green economy efficiency is generally low, and a regionalheterogeneity of green economy efficiency is obvious. (2) For the overall inefficiencyfluctuation of China’s green economy, openness has a significant inhibitory effect;the industrialization level and technological level have a certain inhibitory effect, buttheir importance is weaker than that of openness; fiscal decentralization has an insignificanteffect. Since 2001, changes in unit openness and the unit industrialization level have hada strengthened restraining effect on the inefficiency fluctuations of China’s green economy,and the change in the unit technology level has had a small and stable inhibitory effecton China’s green economy’s inefficiency fluctuation. (3) Openness and the industrializationlevel have had a significant inhibitory effect on the inefficiency fluctuation of China’sregional green economy in the Eastern region more than in the Central and Western regions;the technological level has had a certain inhibitory effect in the Central and Westernregions, but its influence is lower than that of openness. The inhibitoryeffect of unitchange in openness and the industrialization level on the inefficiency fluctuation of greeneconomy in the Central region is greater than that in the Eastern region. The inhibitoryeffect of unit change in the technological level on the inefficiency fluctuation of greeneconomy in the Western region is obviously greater than that in the Central and Easternregions. These conclusions can provide a mathematical basis for a reform of China’s greeneconomy efficiency.

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