Decomposition of Productivity Considering Multi-environmental Pollutants in Chinese Industrial Sector

The objective of this study is to calculate and decompose productivity incorporating multi-environmental pollutants in Chinese industrial sectors from 1992 to 2008. We apply a weighted Russell directional distance model to calculate productivity from both the economic and environmental performance. The main findings are: (1) Chinese industrial sectors increased productivity, with the main contributing factors being labor saving prior to 2000; (2) The main contributing factors for productivity growth in coastal areas include both economic and environmental performance improvement. While central and western regions improved productivity owing to economic development, they have a trade-off relationship between economic and environmental performance.