Study on Air Pollution Total Factor Productivity by Using DEA

Abstract

Combining the non-radial Biennial Directional Distance Function and Luenberger productivity, we construct a framework of the analysis for atmospheric environmental total factor productivity. Based on the panel data of 30 provinces from 2005 to 2012 in China, this calculation uses SO2 and smoke dust for undesired outputs in total factor productivity and its decomposition of efficiency change, technical change and scale change. The results show that technological change is the main motivation, the efficiency change is an important driving force, and scale efficiency changes hinder the further growth of productivity.