Environmental Effects,Technological Progress and the Development of the Manufacturing Industry: A Explain from the Change Mode of Environmental Total Factor Productivity

This paper employs directional distance function and Malmquist-Luenberger productivity index to measure TFP over the period 2001 to 2009 in 31 manufacture industries of China.The results reveal that the TFP of China manufacture industry under environmental restrictions is in a steady growth trend,technology advancement is the primary cause of gains in manufacturing industry TFP.What the most important finding is that the environmental regulations implemented in China since 2001 did substantially improve the real industrial productivity,especially between 2001 and 2002.During the inspection period,we find that the TFP,the production efficiency and the technological progress of heavy industrial productivity improve faster than the terms of the light industry,showing that environmental policy is feasible and effective for model-transfer upgrading and sustainable development in China.