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

Kun LUO^1, and Rendao YE²

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

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

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

Abstract

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.

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

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