The Productivity Dynamics of China's Environmentally Friendly Production Technologies in terms of Wastewater Treatment Techniques

Low economic profit usually reduces the incentive of producers to operate their wastewater treatment technologies effectively. It is necessary to investigate the performance of environmentally friendly production technologies that reduce wastewater discharges and generate economic outputs simultaneously (EPTWs) in China over the past decade. In this paper, we apply the Malmquist-Luenberger productivity index widely used in the field of economics to evaluate the productivity change of EPTWs for 30 administrative provinces in China during 2003–2015. The pathways of the productivity change are further identified by decomposing the productivity index into two components: technological change and technical efficiency change. The results show that China's environmental productivity index associated with wastewater reduction had undergone a downward trend, and evident spatial disparities are observed among the 30 provincial regions. Moreover, the changes of China's environmental productivity over the whole studied period can mainly be attributed to technological progress, while the technical efficiency component has contributed little, although its annual contributing rate is in an increasing trend.