The coefficients selleckchem of ownership structure (X3) are not significant both for VRS hypothesis and the CRS hypothesis, but the ownership structure has significantly positive influence on environmental TFP. The estimation result indicates that the influence of ownership depends on complex factors and is not easy to be expected. The coefficients of energy consumption structure (X4) have significantly positive influence on environmental efficiency and environmental TFP. While the electricity consumption increased by 1%, the environmental efficiency and environmental TFP increased by more than 15%. The empirical results show that compared with coal, petroleum, and other fossil energy, electricity is clean energy, which can greatly improve China’s efficiency and productivity under resource and environmental constraints.
Environmental regulation intensity (X5) has a negative impact on the environmental efficiency under the hypotheses of VRS and CRS, but positive impact on the environmental TFP. This empirical result shows that environmental regulation will increase enterprise production costs and lead the environmental regulation and enterprise competitiveness to be in a dilemma in the short term.5. Conclusions and Policy Implications Using SBM directional distance function and Luenberger productivity index, this paper measures the environmental efficiency, environmental TFP, and its components at the level of subindustry in China over the period from 1999 to 2009 and tests the impacts of industrial capital structure, endowment structure, ownership structure, energy consumption structure, and intensity of environmental regulation.
The findings of this study are crucial for environment administration and industrial upgrading. The specific policies are suggested as follows. 5.1. Optimizing Industrial StructureConsidering the fact that both environmental efficiency and environmental TFP are different among subindustries, the government should accelerate the development of high-tech industries and environment friendly industries and limit the development of pollution-intensive industries and energy-intensive industries. Brefeldin_A The policy makers should also make vigorous guidance to draw FDI to high-tech industries and environmental-friendly industries and promote the industrial upgrading of FDI, protecting China from the pollution heaven of FDI.5.2. Promoting Technological Innovation on Energy Saving and Emission reductionExcessive energy consumption and pollutant emissions are the main sources of environmental inefficiency of China’s industry.