Eco-efficiency Convergence and Green Urban Growth in China

Abstract

Eco-efficiency measures if economic growth and environmental protection are effectively balanced. To understand the path of green urban growth in China, this article examines the converging patterns of eco-efficiency for 191 Chinese cities within 2003 and 2013. Two types of modified Data Envelopment Analysis (DEA) methods and spatial modeling approach are adopted in empirical analyses, with cities grouped based on three types of heterogeneities that facilitate the formation of potential convergence clubs. We find that major Chinese cities are β-converging in their eco-efficiency scores and are forming place-based convergence clubs in terms of geographical location, environmental policy, and resource endowments. Less efficient clubs are converging at a faster speed toward low-level steady states, while more efficient clubs are reaching separate high-level equilibria with relatively slow rates and longer half-life. We further raise corresponding policy implications that aim at retarding or reversing the ongoing trend of eco-efficiency deterioration.