Research on carbon productivity and its spatial convergence of steel industry in China

Abstract

The Global-Malmquist-Luenberger (GML) index was applied to analyze the carbon productivity in steel industry (SICP) of 29 provinces in China from 2006 to 2019, and then, the SICP was decomposed into technical efficiency change index (TC) and technical progress index (EC). On this basis, the spatial effect is introduced into the traditional convergence model to investigate the spatial convergence of SICP. The empirical results show that: (1) the overall carbon productivity of China's steel industry is at a relatively low level, showing a slow growth trend. (2) The average value of the GML index of SICP is higher than 1, showing obvious inter-provincial and regional heterogeneity. Compared with TC, EC is the leading factor that promotes the increase of SICP. (3) The spatial absolute and condition β convergence of SICP exist in the whole country and the three major regions, but the σ convergence feature is not significant. The addition of spatial factors speeds up the convergence trend, and the speed of spatial absolute β convergence is about 3 times that of the classical convergence model. At the same time, the conditional convergence rate is significantly faster than the absolute convergence, which is closely related to the differences in influencing factors such as the industrial structure, economic development level, human capital, energy consumption intensity, and R&D investment among regions. There is still much room for improvement in carbon productivity in China's steel industry, and investment in scientific research must be increased in order to achieve the upgrading of the industrial structure and technological innovation. The existence of spatial convergence requires strengthening the joint reorganization of steel enterprises between provinces and regions, making full use of the spatial spillover effects of production technology, and realizing regional green and coordinated development.

Keywords: Carbon productivity; GML index; Spatial convergence; Steel industry.