The project team is pleased to announce the launch of a new research project titled “A Green Structural Efficiency Framework for New Quality Productive Forces”, scheduled for 2026-2027. This project is supported by the Faculty Development Scheme (FDS) of the Research Grants Council (RGC) of HKSAR. The aim is to establish a green structural efficiency framework that can be used to evaluate the achievement of New Quality Productive Forces.
Abstract:
In September 2023, President Xi Jinping of the People’s Republic of China advocated for the development of “New Quality Productive Forces” (NQPF), a novel economic model centered on innovation in advanced sectors. He urged China to “lead the development of strategic emerging industries and future industries.” There are several key elements associated with NQPF:
- Sectoral Focus: NQPF addresses the group development of specific sectors.
- Supply-Side Emphasis: NQPF prioritizes supply-side dynamics.
- Green Development Consideration: NQPF incorporates concerns regarding carbon emissions and other undesirable by-products.
As a relatively new concept, literature on the measurement and study of NQPF is limited. To our knowledge, no existing tools adequately address this topic. We propose that the framework of structural efficiency, within the context of productivity and efficiency analysis, is well-suited for examining NQPF. Structural efficiency measures the overall productive efficiency of a group with varying production units (PUs). However, current structural efficiency models have notable shortcomings, particularly in their neglect of undesirable outputs.
This proposed project aims to bridge this research gap by establishing a green structural efficiency framework that integrates the three aforementioned key elements to evaluate the achievement of NQPF in China’s regional economies and listed firms. We will develop a comprehensive model of green structural efficiency to assess the productive efficiency of a group of PUs, taking undesirable outputs into account.
Several objectives in measuring green structural efficiency will be explored, including maximizing desirable outputs while holding other variables constant, minimizing undesirable outputs while holding other variables constant, or a combination of both. Additionally, the project will investigate the sources of inefficiency through various approaches, determining whether misallocation occurs within or among PUs. Finally, the new green structural efficiency framework will be applied to evaluate the Chinese regional economy and firms listed in China, with implications for NQPF identified.