Energy Consumption and Carbon Emission Based Industrial Productivity in China: A Sustainable Development Analysis

The paper investigates the determinants of productivity growth in China. It also analyses the sustainability of the country's industrial growth by estimating sectoral productivity, accounting for energy usage and emission since the market‐oriented reforms launched in the late 1970s. The empirical analysis indicates that productivity is the most significant driver of growth. The substantial productivity improvement of China's industry is mainly attributable to high‐tech light industrial sectors. Heavy industry lags behind in terms of productivity and overall technical change.