Abstract
The eco-efficiency of manufacturing industries has been a concern for decades in China. However, less attention has been paid to the growing service inputs in manufacturing industries and their eco-efficiency impact. Based on China’s input-output tables in consecutive years collected from the structural analysis database issued by the OECD, this study describes service inputs in manufacturing industries with the direct and total consumption coefficients and then primarily discusses its environmental impacts as measured by the green total factor productivity. It finds that a significant nonlinear U-shaped relationship exists between service inputs in manufacturing industries and eco-efficiency in which the expected positive impact only emerges when a critical level of service inputs is achieved. The findings exhibit significant robustness under various measures of outcome variables and explanatory variables, as well as subsample checks and instrumental variable estimation. Environmental technical progress, rather than environmental technical efficiency, plays a decisive role in the U-shaped relationship and contributes to improvement in eco-efficiency. Furthermore, this study reveals that service inputs in the form of direct consumption of intermediate service in manufacturing industries have a significant positive impact on eco-efficiency.
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Notes
Sectors selected are unified according to the International Standard Industrial Classification revision 4 (ISIC Rev.4). Service sectors selected for the calculation of service inputs in manufacturing industries first include 6 sectors related to producer services, including wholesale and retail trade; transportation and storage; telecommunications; IT and other information services; financial and insurance activities; and other business sector services. Service sectors selected for the calculation of service inputs in manufacturing industries also include the other 8 sectors, including accommodation and food services; publishing; audiovisual and broadcasting activities; real estate activities; public administration and defense; education, human health, and social work; arts, entertainment, and recreation; and private households with employed persons. For the study, we mainly visualized the service inputs in manufacturing industries reflected by 6 intermediate inputs related to producer services.
The input-output tables for continuous years are issued by the OECD-STAN database for free use; however, they are only available until the year 2014. This determines that the empirical research can hardly use the newest observations.
To keep the paper reasonably concise, the nonlinear test for Column (5) and the model specification GTFP-cser in Column (8) in Table 3 are not given.
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The datasets used during the current study are available from the corresponding author on reasonable request.
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The study has been partially funded by the National Social Sciences Foundation of China (16CJL026), the base project of Jiangsu Social Science Foundation (20JD004) and the Basic Research Fund of Southeast University (2242021S20023).
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ZD analyzed and interpreted the data regarding the service inputs in manufacturing and its impact on eco-efficiency. CJ was a major contributor in writing the manuscript. All authors read and approved the final manuscript.
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Zhao, D., Chen, J. An analysis of the impact of service inputs in manufacturing industries on eco-efficiency: evidence from China. Environ Sci Pollut Res 28, 61825–61840 (2021). https://doi.org/10.1007/s11356-021-15092-x
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DOI: https://doi.org/10.1007/s11356-021-15092-x