China's Productivity Growth Hindered by Coal Intensity and Environmental Regulations
China is trying to balance economic growth with reducing emissions. A study looked at productivity growth in China and found that ignoring undesirable outputs leads to overestimating true productivity growth. Technical changes are the main driver of productivity growth. There are big differences in productivity growth between regions in China. Coal intensity, environmental regulations, and industrial structure have negative effects on productivity growth, while real per capita GDP and foreign direct investment have positive effects.