Journal of Finance and Economics
ISSN (Print): 2328-7284 ISSN (Online): 2328-7276 Website: Editor-in-chief: Suman Banerjee
Open Access
Journal Browser
Journal of Finance and Economics. 2017, 5(6), 310-315
DOI: 10.12691/jfe-5-6-7
Open AccessArticle

The Efficiency Improvement in Low-carbon Technology Innovation of Chinese Enterprises under CDM: An Empirical Study based on DEA Assessments

Kun LUO1, and Rendao YE2

1Alibaba Business College, Hangzhou Normal University, Hangzhou, China

2College of Economics, Hangzhou Dianzi University, Hangzhou, China

Pub. Date: December 19, 2017

Cite this paper:
Kun LUO and Rendao YE. The Efficiency Improvement in Low-carbon Technology Innovation of Chinese Enterprises under CDM: An Empirical Study based on DEA Assessments. Journal of Finance and Economics. 2017; 5(6):310-315. doi: 10.12691/jfe-5-6-7


The Clean Development Mechanism (CDM) with financial incentives and technical transfer brings about potential improvement in the efficiency of Chinese enterprises’ low-carbon technology innovation. Based on DEA models and data of industrial enterprises, we assess the efficiencies and their improvement under CDM. We then estimate the effects of CDM on the probability of efficiency improvement using a logit model. The effects of CDM on the improvement rate are also estimated. It is found that the undertaking of CDM would benefit Chinese enterprises to achieve more significant efficiency improvement in their low-carbon technology innovation, by raising not only the probability but also the rate of efficiency improvement.

clean development mechanism (CDM) low-carbon technology innovation efficiency improvement DEA

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit


Figure of 7


[1]  Matsuo, N. “CDM in the Kyoto negotiations: how CDM has worked as a bridge between developed and developing worlds?”, Mitigation and Adaptation Strategies for Global Change, 2003, 8: 191-200.
[2]  Olsen, K.H. “The CDM’s contribution to sustainable development”, Climatic Change, 2007, 84:59-73.
[3]  Pielke, R.J., et al. “Dangerous assumptions”, Nature, 2008, 4523: 531-532.
[4]  Schneider, M., et al. “Understanding CDM’s contribution to technology transfer”, Energy Policy, 2008, 36: 2930-2938.
[5]  Popp, D. “International technology transfer, climate change, and the Clean Development Mechanism”, Review of Environmental Economics and Policy, 2011, 5(1): 131-152.
[6]  Haites, E., et al. “Technology transfer by CDM projects”, Climate Policy, 2006, 6: 327-344.
[7]  Pan, J.H. Transaction costs for undertaking CDM projects. Institute of World Economics and Politics, 2009.
[8]  Seres, S., et al. “Analysis of technology transfer in CDM projects”, Energy Policy, 2009, 37: 4919-4926.
[9]  Dechezlepretre A, et al. “Technology transfer by CDM projects: a comparison of Brazil, China, India and Mexico”, Energy Policy, 2009, 37: 703-711.
[10]  Shin, S. “The domestic side of CDM: the case of China”, Environmental Politics, 2010, 19(2): 237-254.
[11]  Wang, B. “Can CDM bring technology transfer to China? An empirical study of technology transfer in China’s CDM projects”, Energy Policy, 2010, 38: 2572-2585.
[12]  Thomas, S., et al. “The drivers and outcomes of the Clean Development Mechanism in China”, Environmental Policy and Governance, 2011, 21(4): 223-239.
[13]  Teng, F., et al. “CDM practice in China: current status and possibilities for future regime”, Energy, 2010, 35(11): 4328-4335.
[14]  Luo, K., Ye, R.D. Measuring Zhejiang Enterprises’ Low-carbon Technology Innovation Efficiency: a DEA approach. ICESD2015 (2015 International Conference on Education and Social Development), Nanjing, 2015.
[15]  Charnes, A., Cooper, W.W., Rhodes, E. “Measuring the efficiency of decision making units”, European Journal of Operational Research, 1978, 2: 429-444.
[16]  Banker, R.D., Charnes, A., Cooper, W.W. “Some models for estimating technical and scale inefficiencies in Data Envelopment Analysis”, Management Science, 1984, 30: 1078-1092.
[17]  Wei, Q.L., Yue, M. “Introduction to DEA and CCR Model- Data Envelopment Analysis (Part 1)”, Systems Engineering- Theory & Practice, 1989, 1: 58-69.
[18]  Wei, Q.L., Cui, Y.G. “Several Important DEA Models for Measuring Relative Efficiency- Data Envelopment Analysis (Part 2)”, Systems Engineering- Theory & Practice, 1989, 3: 55-68.
[19]  Wei, Q.L., Lu, G. “Application of the DEA Approach and Models- Data Envelopment Analysis (Part 3)”, Systems Engineering- Theory & Practice, 1989, 5: 67-75.
[20]  Charnes, A., Haag, S., Jaska, P., et al. “Sensitivity of efficiency classification in the additive model of data envelopment analysis”, International Journal of System Science, 1992, 23: 789-798.