Carbon emission efficiency of Chinese manufacturing enterprises: stylized facts and micro-level driving factors

This paper utilizes micro-level data of Chinese manufacturing enterprises, sourced from the National Tax Survey Database (2007–2014), to measure carbon emission efficiency (CEE) for illustrating the stylized facts and identifying firm-level driving factors of CEE. Time-series analysis shows CEE increases during the sample period. Dynamic Olley-Pakes (OP) and logarithmic mean Divisia index (LMDI) decompositions indicate that technological innovation effect improves total emission efficiency, while resource allocation and firm exit effects play opposite role. Energy intensity and energy efficiency are primary driving forces of carbon emissions among distinct regions. Cross-sectional analysis finds that approximately 75% of CEE heterogeneity stems from intra-industry differences, with similar CEE provinces clustering spatially (high-high and low-low agglomerations), especially in high-output regions like the Yangtze River Delta. Empirical results show firm size, capital productivity and labor productivity positively correlate with CEE, whereas higher capital-labor ratios and export participation link to lower CEE.