Technical efficiency characteristics and the policy sensitivity of environmental protection enterprises: Micro evidence from China.

The high-quality development of the environmental protection industry (EPI) requires the support of the corresponding industrial policy system. Taking the input-output efficiency of China's environmental protection enterprises (EPE) as the starting point, this paper conducts a micro-empirical analysis (including random frontier calculation, structural feature combing, and driving mechanism analysis) on the effects of and structural differences in different policy support measures such as taxation, subsidies, and credit. The study finds that first, there are significant ownership and regional differences in the technical efficiency (TE) of Chinese EPE, and the TE level of state-owned and central and western EPE is relatively low. Second, tax relief measures have significant efficiency enhancement effects, especially for non-state-owned enterprises. Third, government subsidies for non-state-owned enterprises and credit support for the central and western regions can produce efficiency improvements. Therefore, constructing a structured policy support system is an important measure to improve the high-quality development of China's EPI. • From the input-output perspective, the TE of EPE has ownership differences and regional heterogeneity. • The effects of different policy support methods are significantly different. • Tax reductions and government subsidies for non-state-owned enterprises have the effect of improving efficiency. • Credit support for the central and western regions can produce efficiency improvements. [ABSTRACT FROM AUTHOR]