An Empirical Research on Technological Efficiency & its Influential Factors of Low Carbon Enterprises in China

Abstract

Based on the public listed firms’ panel data (from 2003 to 2009), this study uses the stochastic frontier models of the Cobb-Douglas to analyze the technological efficiency (TE) and its influential factors of low carbon enterprises in China. The research reveals that the average TE is 0.751 of low carbon enterprises in China, and the TE varies among enterprises. There is room for the firms to improve their TE. Instead of labor, it is the capitals that mainly attribute to the development of TE, and the fund utilizing capacity also has a significant influence on the TE of low carbon enterprises in China, however, technical capacity and the scale of the enterprises have a negative effect on the TE. The capital structure, to some extent, restrains the increase of TE. The TE of low carbon enterprises increases year annually, but the tendency is not apparent.
Key words: Low carbon enterprises; Stochastic frontier analysis; Indigenous technical efficiency