Energy consumption restricted productivity re-estimates and industrial sustainability analysis in post-reform China

This paper investigates the impact of energy on China's industrial sustainability by using a novel approach to estimate real total factor productivity. The growth accounting indicates that the substantial industrial reforms in China have led to productivity growth. Energy and capital are also important factors driving China's industrial growth. Productivity growth in China's industry is mostly attributable to the high-tech light industrial sectors.

► Productivity has become the most important growth engine in majority of sectors.
► Energy and capital are also important factors promoting China's industrial growth.
► The productivity improvement is more attributable to high-tech light industry.
► The heavy industry performs worse than the light one in terms of productivity.