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Have Chinese cities achieved the win–win between environmental protection and economic development? From the perspective of environmental efficiency
Institution:1. Department of Industrial and Systems Engineering, National University of Singapore, 10, Kent Ridge, Crescent, 119260, Singapore;2. College of Economics and Management & Research Center for Soft Energy Science, Nanjing University of Aeronautics and Astronautics, No. 29 Jiangjun Avenue, Nanjing 211106, PR China;1. School of Business, Soochow University, No. 50 Donghuan Road, Suzhou 215021, China;2. Energy Studies Institute, National University of Singapore, No. 29 Heng Mui Keng Terrace, 119620, Singapore;3. Soochow Think Tank, Soochow University, No. 50 Donghuan Road, Suzhou 215021, China
Abstract:The development of a regional or national economy is always accompanied by a variety of environmental problems. Using meta-frontier and data envelopment analysis (DEA), this paper investigates the environmental protection mechanisms and economic development of 211 cities in China from the perspective of environmental efficiency. The major conclusions are: (1) the overall environmental efficiency of Chinese cities is low when the most advanced production technology is selected as the reference. Only 10% of cities have achieved a win–win, defined as an effective balance between environmental protection and economic growth. It is possible to increase economy and reduce pollutant emissions at the same time for most of cities. (2) The environmental efficiencies and production technologies of cities in five different groups (based on a widely accepted business index) present significant differences. First-tier cities possess more advanced technology, higher environmental efficiency and, therefore, a higher overall win–win balance between economic development and environmental protection; while the fourth-tier and fifth-tier cities have a relatively large gap between development and protection. (3) To achieve a win–win balance between environmental protection and economic development, the local government of different cities should develop appropriate policies that maximize the use of technology and management practices that enhance both growth and protection.
Keywords:Environmental efficiency  Economic development  Heterogeneity decomposition  Meta-frontier DEA
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