THE IMPACT OF ECONOMIC GROWTH ON ENVIRONMENTAL EFFICIENCY IN CHINA WITH EXTENDED SBM MODEL

Abstract

An extended SBM model is proposed to measure the provincial environmental efficiency including undesirable input and undesirable output in window analysis. In the index system, energy consumption is used as an undesirable input as a new approach and undesirable output is a different combination of three kinds of pollution emissions (SO 2 , COD, and CO 2 ), and the dataset covers 30 provinces in China from 2005 to 2017. It is found that there is a big gap in the environmental efficiency scores among different provinces and higher scores in the east region and lower scores in the west region. In the long run, it has the property of a generally upward trend and regional convergence and there is a strong positive relationship with economic growth. Then, a variety of econometric models, including panel data model, GMM model, and panel Tobit model test the N-shape curve reflecting the relationship between environmental efficiency and economic growth, and the conclusions are consistent with robust results. economic efficiency panel model, model, and model. The conclusions obtained are consistent, and the results are robust.