Abstract：The rapid growth of China’s economy has brought about huge losses of natural capital in the form of natural resource depletion and damages from carbon emissions. This paper recalculates value added, capital formation, capital stock, and related multifactor productivity in China’s industrial sectors by further developing the genuine savings method of the World Bank. The sector-level natural capital loss was calculated using China’s official input–output table and their extensions for tracing final consumers. The capital output elasticity in the productivity estimation was adjusted based on these tables. The results show that although the loss of natural capital in China’s industrial sectors in terms of value added has slowed, the impacts on their productivity during the past decades is still quite clear.
Keywords
Genuine savings method, Total factor productivity, Input–output method, China
Input–Output-Based Genuine Value Added and Genuine Productivity in China’s Industrial Sectors (1995-2010)
Acknowledgement: This study was funded by the TSINGHUA-IDE/JETRO-USITC-IGLCEjoint research project “Tracing China’s CO2 Emissions in Global Value Chains”. We aregrateful to CIDEG of Tsingua University for providing the opportunity to conduct this jointresearch in 2014.
