Green total factor productivity measurement of industrial enterprises in Zhejiang Province, China: A DEA model with undesirable output approach

The green production efficiency of industrial enterprises in Zhejiang Province is not only related to the level of green economy in Zhejiang Province, but also provides an example for the green development of national industrial enterprises. This paper used the panel data of industrial enterprises by sector and city in Zhejiang Province from 2012 to 2017. Firstly, the entropy weight method is employed to calculation the Comprehensive Environment Pollution Index (CEPI) of various sectors and cities including sulfur dioxide; nitrogen oxide; smoke and dust; solid waste and hazardous solid waste. The method of output-oriented Data Envelopment Analysis (DEA) model with undesirable output was employed to measure Global Malmquist-Luenberger Productivity Index (GMLPI). The conclusion shows that: (1) Zhejiang industrial enterprises have made slight progress (0.738% per year on average) in comprehensive efficiency between 2012 and 2017. (2) In sectoral efficiency analysis, the fluctuation of TC and SEC is the main factor affecting the comprehensive efficiency of the sector. (3) In city efficiency analysis, Hangzhou; Ningbo; Wenzhou; Jiaxing and Shaoxing have made progress in comprehensive efficiency in the research period, while Jinhua; Quzhou and Zhoushan have made decline. This paper provides support for the green development of Zhejiang Province.