Total factor productivity and the factors of green industry in Shanxi Province,China

Based on industrial panel data from 11 prefecture-level cities in Shanxi Province from 2008 to 2016, two kinds of total factor productivity (TFP) are measured: With and without the consideration of environmental factors. The specific decomposition of TFP under these two conditions is then discussed. Finally, the factors of TFP are studied in a green industry context. The results indicate the following: (a) The TFP's annual growth rate considering environmental conditions is higher than that without such consideration; (b) if environmental factors are neglected, TFP improvements primarily depend on technological progress; (c) when considering environmental factors, both technological progress and improved technological efficiency promote the growth of green TFP (GTFP), but this still primarily depends on substantial technological progress, with an annual average growth rate that reaches 10.2%; and (d) among factors, the economic development level, degree of openness, and urbanization positively correlate with the GTFP, while the industrial structure and degree of informatization significantly and negatively correlate with GTFP.