Green development performance in China: A metafrontier non-radial approach

Abstract

This paper proposes a green development growth index (GDGI) for measuring the changes in sustainable development over time. This index considers a wide range of pollutants, and allows for the incorporation of group heterogeneity and non-radial slack in the conventional green development index. The GDGI is calculated based on a non-radial directional distance function derived by several data envelopment analysis (DEA) models, and was decomposed into an efficiency change (EC) index, a best-practice gap change (BPC) index and a technology gap change (TGC) index. The proposed indices are employed to measure green development performance in 30 provinces in China from 2000 to 2012. The empirical results show that China has a low level of green development, with a 2.58% increase per year driven by an innovation effect. China's green development is mainly led by the eastern region, and the technology gaps between the eastern region and the other two regions (the central and western regions) have become wider over the years. The group innovative provinces have set a target for resource utilization of non-innovative provinces in order to catch-up with the corresponding groups, while the metafrontier innovative provinces provide targets for the technology levels of other provinces to improve their green development performance.