Did China's regional transport industry enjoy better carbon productivity under regulations?

Despite rapid economic development, the transport industry has been claimed to account for a major part of climate change. This paper investigates total factor carbon-sensitive productivity growth in the regional transport sector in China and decomposes its dynamic changes over time taking account of the regional heterogeneity of different provinces. Thus, the contemporaneous metafrontier Malmquist-Luenberger approach that combined with non-radial directional distance functions is proposed and define a new indicator called the contemporaneous metafrontier Malmquist-Luenberger carbon emission performance index (CMML). This total factor indicator includes the metafrontier efficiency-change index (MEC), the metafrontier technology-change index (MTC), and the metafrontier technology-gap-change index (TGC). Results show an about 4% increase in overall total factor carbon emission productivity during the period of 2000-2012. Different growth patterns are also observed in the transport sector across different area of China. In the eastern region, the growth of carbon productivity is driven mainly by pure efficiency changes, whereas the central region is driven mainly by innovations in the low-carbon transport technology.