Portal de Periódicos da CAPES

Factor market distortion, technology change, and green growth in the Chinese civil airline industry

2021; Elsevier BV; Volume: 77; Linguagem: Inglês

10.1016/j.asieco.2021.101392

1873-7927

Wei Liu, Gao Li-xiang, Hang Song, Huang Ming-dong,

Fiscal Policy and Economic Growth

This study evaluates the growth in the green performance of 35 Chinese airlines from 2010 to 2018. This study analyzes whether factor market distortion affects technology change and green growth in China's aviation industry and proposes corresponding policy suggestions. A Global Malmquist-Luenberger (GML) productivity index and its decomposition are used to evaluate the green growth and technology change of thirty-five Chinese airlines from 2010 to 2018. Additionally, to overcome the endogeneity problems, the system generalized method of moments is used to test the effect of factor market distortions on the green growth of Chinese airlines. The GML index reveals that although total CO2 emissions continue to increase, the growth in the green performance of Chinese airlines is positive. The regression results show that factor distortion has a negative impact on airlines' technology change and impedes airlines' green performance. The scale of airlines, ownership, and R&D intensity of airlines could have heterogeneous effects on the relationship between factor distortion and airlines' green growth. Factor market distortion is the most important factor influencing the green performance of airlines. Rectifying factor market distortion can be regarded as another impetus to promote the green growth of airlines.