Can constraint energy-saving policy facilitate industrial green production performance in China?

Abstract

The role of constraint energy-saving policy (ESP) playing in the coordinated development of energy conservation, emission reduction, and economic growth is of great significance to the country's sustainable progress. Applying a non-radial and non-oriented DEA model incorporating innovation output and multiple undesirable outputs, this paper measures the green production performance (GPP) of China's industrial sectors from 2002 to 2015. And then the effect of implementing energy-saving policy on GPP is investigated through Quasi-difference-in-differences (Quasi-DID) method. The results show that China's industrial GPP rises during 2002-2004 and then declines with fluctuations. Technology change (TC) is the dominant driver. Energy-saving policy positively affects industrial GPP in general yet further dynamic analysis reveals that such a positive effect remains unstable and finally manifests a reverse impact at the end of every five-year-plan period. Therefore, China should properly introduce market mechanisms, formulate comprehensive policy mix strategies to balance sustainable improvement of industrial economy and ecological environment.