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The Asian Journal of Shipping and Logistics 34(3) (2018) 191-197

Contents lists available at ScienceDirect

The Asian Journal of Shipping and Logistics

Journal homepage: www.elsevier.com/locate/ajsl

A Study on the Influence Mechanism of Port Environmental Carrying Capacity

Jian LIa, Bao JIANGb, Na LINc


a Professor, College of Economy, Ocean University of China, Qingdao, China, E-mail: lijian@ouc.edu.cn (First Author)
b Associated
Professor, College of Economy, Ocean University of China, Qingdao, China, E-mail: jiangbao@ouc.edu.cn (Corresponding Author)
c
College of Economy, Ocean University of China, Qingdao, China

ARTICLE INFO ABSTRACT

Article history: Based on the concept of environmental carrying capacity (ECC), this study applies data
Received 15 October 2017
envelopment analysis (DEA) and panel data analysis on panel data of 20 coastal ports in China
Received in revised form 15 March 2018
Accepted 31 July 2018 from 2007 to 2012 to study the ECC mechanism of coastal ports. Research indicates that both port
environmental technology level and environmental construction scale affect port ECC (PECC) with
Keywords: the latter dominating the changes in PECC. Additionally, economic development level and port
Environmental carrying capacity throughput capacity positively impact PECC; educational investment negatively impacts PECC to a
Environmental Kuznets Curve certain extent; and the degree of technological innovation and industrial transformation and
Environmental Education Theory
upgrading have no obvious effect on PECC, indicating that science and technological investments
Cost Theory
Data envelopment analysis did not achieve the desired output of industrial transformation and upgrading. Given the
government’s policy of advancing sustainable development and supply-side reform, this study
provides policy guidance for the port to promote the construction of ecological civilization from the
perspective of PECC.

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1. Introduction

Driven by economic globalization and trade liberalization, ports have port environmental carrying capacity (PECC) are opposing forces,
developed rapidly and have gradually become an important growth pole of resulting in slow development of the port economy.
the urban economy (Jiang, 2010). However, in an extensive economic Therefore, a study of the PECC mechanism can promote understanding
growth mode, high losses and input bring about high emissions and of port development law, provide a comprehensive understanding of the
pollution, leading to a deteriorating port ecological environment (Dai et al., development status and factors that hinder port development, and facilitate
2008) and limiting port development in China. Port economic growth and the development of a viable and scientific development strategy (Yuan

http://dx.doi.org/10.1016/j.ajsl.2018.09.002

2092-5212/© 2018 The Korean Association of Shipping and Logistics, Inc. Production and hosting by Elsevier B.V.
Peer review under responsibility of the Korean Association of Shipping and Logistics, Inc.
192 A Study on the Influence Mechanism of Port Environmental Carrying Capacity

and Li, 2013; Chen and Bao, 2008). Based on the sustainable environmental problems to a certain extent. While the port belongs to the
development of the port, this study applies the data envelopment analysis tertiary industry, the secondary industry accounted for far more than the
(DEA) and panel data models to analyze the impact mechanism of PECC tertiary port industry with much lower levels of technical intensity and
and thereafter, provides suggestions for improving the port carrying fine processing in the industry interior than that required by the tertiary
capacity and promoting sustainable port development. industry. The development of the port’s tertiary industry would help
reduce environmental consumption and gradually form a type of low
pollution-low consumption development model. To a certain extent, the
2. Literature Review port’s transformation and upgrading would affect the PECC. “Porter
Hypothesis” views that improving the technology and competitiveness of
The mechanism of environmental carrying capacity (ECC) comprises enterprises can bring about an improvement in environmental quality. He
two parts. First, there is the internal influence mechanism, i.e., the internal et al. (2015) further proposed the “Environmental Policy Effectiveness”
influence of port construction on the port’s ECC. Second, there is the hypothesis whereby improving the technical level can effectively reduce
influence of external factors on the port’s carrying capacity, including environmental pollution. Ling and Feng’s (2012) research results show
social and economic factors, technical effect overflow, and educational that science and technology can effectively control and govern
radiation effects. environmental pollution. Environmental regulation can have an impact on
In the study of PECC, the influencing factors are rarely explored. technological progress, which, in turn, can promote environmental
Nonetheless, the study of influencing factors is necessary to coordinate protection (Shi et al., 2013; Shixiong et al., 2007). Improvements in
economic development and the environment. Drawing on Ma et al.’s technical level can greatly reduce social transaction costs, realize the
(2007) and Zhang et al.’s (2013) research methods, this study divides the intensive development of resources and environment, optimize resource
PECC into technical and scale carrying capacities, expressing them as allocation, reduce consumption of environmental resources, realize the
environmental technology and environmental construction scale, change of port operation mode, and improve port output efficiency and
respectively. The internal impact mechanism of PECC is studied from the ECC.
perspective of the port’s technology level and environment construction
scale. In addition, the external influence mechanism of PECC is further
studied from three aspects: economy, society, and environment. 3. Research on Internal Mechanism
ęEnvironmental Kuznets Curve” hypothesis (EKC) argues that there is
a clear constraint between economic growth and environmental pollution 3.1. Model Building
such that inadequate economic development would have an adverse
impact on the environment and the environmental quality would improve Based on the theory of environmental carrying capacity, PECC is
with higher economic growth (Song and Wang, 2011). Conversely, He defined from the “threshold” perspective as the threshold established by
and Ran (2009) believed that economic growth has led to serious influencing human activities. Within this threshold, the port can maintain
environmental problems and that there is a two-way impact between its own function and the dynamic stability of environmental systems, i.e.,
economic growth and environmental pollution. Hinterland economic the “optimal value” of ECC (Zhang et al., 2008). By analysing the
development level is closely related with port environment and “threshold” of the carrying capacity of the port, the load threshold of
development; the port city’s economy depends heavily on port various environmental factors in the port can be quantitatively analyzed
development and port development greatly promotes the development of under the optimal carrying capacity. In addition, the port’s internal impact
the city (Zhang et al., 2014). In addition, different levels of economic mechanism can be reflected upon, thereby enabling the systematic
development have an important impact on the port’s input and output, and evaluation of the environmental conditions of the port economy and
thus, have a certain impact on PECC. facilitating the visual control of relevant environmental policy.
ę Environmental Education Theory” highlights the impact of higher According to the quantitative measure of the ECC “threshold,” the BCC
levels of population education on the role of sustainable development and model calculation results are represented by the comprehensive carrying
notes that improvements in cultural structure would also promote the capacity of the port environment, the port environmental technology
scientific management of enterprises, resulting in a high level of carrying capacity, and port environmental scale carrying capacity.
productivity and lower undesired output. Indeed, environmental education Using this quantitative measure of the PECC, index 1 shows that the
has become an important support and guarantee towards the construction port environment input and output efficiency is the highest, i.e., the
of an “ecological civilization” and an effective means of implementing a overall effect of port environment construction is the best. In addition, the
sustainable development strategy. People with a higher level of education port “technical carrying capacity” index shows the level of port
have a higher awareness of environmental protection; hence, education environmental resources utilization, i.e., economic and technological level
levels have a certain impact on the ECC. of port environment construction, while the “scale bearing capacity” index
ęCost Theory” maintains that reasonable environmental regulation can of the port shows the scale effect of the port environment input and
form a mechanism for enterprises’ reform, accelerating the transformation output, i.e., the scale of the port environment construction.
and upgrading of industries to adapt to the sustainable development of the Moreover, further projection analysis of China’s coastal ports can
environment. In the short term, given upgrading and its associated costs, clearly describe the difference between the output and investment capacity
its role or impact on the environment is not obvious. However, in the long of each port and adjust the input-output value for the port that does not
run, transformation and upgrading is an important means to enhance the meet the standard to achieve the optimal input-output level. In this
quality of the environment (Zeng et al., 2013). Yuan and Xie (2014) found manner, we can obtain the microcosmic factors that affect the port’s
that environmental regulation plays a catalytic role in industrial structure carrying capacity. According to the 2007-2012 input-output indicators
adjustment and industrial upgrading becomes the key to solve corresponding to the slack variable, we can obtain the factor adjustment’s
A Study on the Influence Mechanism of Port Environmental Carrying Capacity 193

difference from the optimal frontier. of the ports in the Pearl River Delta is 0.815 and Shantou Port’s PECC is
Notwithstanding that port development warrants a certain amount of poor. It is found that the main factor affecting the comprehensive PECC is
resource investment, the port of China blindly pursues growth in port size the scale carrying capacity of the port, i.e., the port environment
and business volume while ignoring the actual development of the port construction scale dominates the impact on comprehensive PECC, thereby
itself, resulting in overcrowding, over-redundancy, excessive port implying that the scale effect in the process of port construction did not
investment, inefficiency, and so on. When the port’s input and output produce the incremental effect for most ports.
values reach the effective value of DEA, the ECC of the port is in the
optimal state, i.e., within the PECC threshold. Table 2
China’s coastal PECC evaluation
3.2. Index Selection Comprehensive Technical Scale
Area Ports Carrying Carrying Carrying
Human activities determine the PECC to a large extent. Hence, Capacity Capacity Capacity
selecting different measurement metrics and human activities would result
Qingdao 0.934 1.000 0.957
in different structures when measuring port carrying capacity. We need to
Rizhao 0.888 0.990 0.910
take separate measures by period, region, and the changes of port’s
Yantai 0.807 0.939 0.867
conditions when we evaluate PECC. The selection of indicators and the Bohai
Average 0.758 0.916 0.835
establishment of an evaluation index system are essential steps for this Sea
Dalian 0.694 0.939 0.849
purpose. This paper mainly combines the definition and characteristics of Region
Tangshan 0.684 0.918 0.844
PECC to develop the evaluation index.
Yingkou 0.662 0.843 0.711
PECC is an objective quantity with objective attributes; it is an
Tianjin 0.639 0.785 0.707
environmental system with a certain functional structure to meet human
Shanghai 1.000 1.000 1.000
needs and bear the pressure of human activities. In addition, the port is a
Zhoushan 0.930 1.000 0.955
resource; science and technological developments as well as social life
Yangtze Ningbo 0.893 1.000 0.930
would involve a certain consumption of port resources. To quantify the
River Average 0.712 0.879 0.805
PECC, we should take into account economic and social activities, human
Delta Wenzhou 0.561 0.782 0.687
activities, port natural conditions, and so on (Lane et al., 2014; Zhuang et
Nantong 0.458 0.757 0.652
al., 2009; Cao et al., 2006).
Fuzhou 0.428 0.737 0.607
Considering the availability and completeness of the statistical data and
Shenzhen 1.000 1.000 1.000
the selection principle of the evaluation index, this study selects passenger
Pearl Xiamen 1.000 1.000 1.000
throughput, container throughput, and per capita GDP as the output index,
River Guangzhou 0.865 0.977 0.901
and the number of berths, length of berths, sewage treatment rate,
Delta Average 0.815 0.923 0.832
pollutant emissions, and number of environmental management
Shantou 0.393 0.716 0.428
practitioners as input indicators. According to Yang and Wang (2013)
selection criteria, this study regards unexpected output of pollutant Haikou 1.000 1.000 1.000
South
emissions as input indicators. Fangcheng 1.000 1.000 1.000
China
Average 0.948 0.985 0.963
Sea
Table 1 Beihai 0.844 0.954 0.888

Quantitative indicators of environmental carrying capacity


Input Indicators Output Indicators
Based on the PECC projection analysis, the method of improving port
carrying capacity can be discussed in detail. In addition, according to our
Container Throughput
Number of Berths findings, passenger throughput may be increased since an increase in
Passenger Throughput
Length of Berths passengers imposes a small incremental damage to the environment and
can effectively improve the economic efficiency of the port. It is an
Number of Environmental effective means to bridge the PECC. Nonetheless, this method is based on
Management Practitioners environmental costs; improving the ECC should be based on more
Per Capita GDP
Sewage Treatment Rate scientific and objective means.
Pollutant Emissions

3.3. Empirical Results 4. Research on External Mechanisms

At a sub-regional level, the ECC of the port in the South China Sea area 4.1. Model Establishment
is the highest with a comprehensive PECC of 0.948. The port technology
and scale carrying capacities indicate comprehensive and coordinated This paper selects the observations of 20 coastal ports in China from
development while the “ecological civilization” construction effect of the 2007 to 2012, adopting the comprehensive ECC of the port as the
port is remarkable. Average carrying capacity of the ports in the Bohai explanatory variable. A panel regression model is established by using the
Rim area is 0.758, among which the port carrying capacity of Tianjin, variable index of ECC as the independent variable:
Yingkou, Tangshan, and Dalian is poor. Ports in the Yangtze River Delta
have an average port carrying capacity of 0.712, with Wenzhou, Nantong, Capacity=SCDP+TTL+TYTR+KJYR per GDP (1)
and Fuzhou faring poorer in this measure. The average carrying capacity
194 A Study on the Influence Mechanism of Port Environmental Carrying Capacity

Capacity represents the portability of the port under study. In terms of Table 3
explanatory variables, SGDP represents the level of economic Panel cointegration test
development, SJYB represents the industry transformation and upgrading Testing method Statistic name Statistic value
capacity, KJTR represents technology investment, JYTR represents Panel V -6.325
education investment, TTL represents port throughput, and i and t Panel rho 4.578
represent port and year, respectively. The intercept and random error Panel PP -25.857***
items are also included. Pedroni test Panel ADF -11.467***
This study mainly employs panel data of 20 ports along the coast of Group rho 7.562
China from 2007 to 2012, which ensures that the research analysis has a Group PP -10.332***
sufficient sample size to ensure a suitable statistical level. Including six Group AD -2.501***
years of data can overcome the statistical subjectivity associated with an Kao test ADF -6.704***
individual time series. At the same time, the panel data selected in this Note: Δ represents the first difference of the variable
study are collected from the Year-on-Year Statistical Yearbook and China *, **, *** respectively represents statistical significance at the 1%, 5%, and
Urban Statistical Yearbook. Therefore, the study data are objective and 10%
real.
To assess the rationale of adopting this method, the redundant fixed
4.2. Index Selection effect test is employed to judge whether it is a mixed data or a fixed effect
model. As shown in Table 4, the F statistics are 7.850 and 101.261,
Numerous factors affect the carrying capacity of the port with complex
respectively, and the corresponding p-values are all near 0, which is
underlying relationships. We synthesize the literature review to identify
significant at the 1% level. The redundancy fixation test rejects the
the factors that influence actual port development and select factors for
original hypothesis. Therefore, we should employ the individual fixed
inclusion based on data availability. Adopting PECC as the explanatory
effect regression model.
factor, we use economic development level, industrial transformation and
upgrading ability, science and technology level, education level, and port
Table 4
throughput capacity as explanatory variables.
Redundant fixed effect test results
Redundant fixed effect test Statistic value df p-Value
Port economy level (SGDP) = National tertiary industry output per (2)
GDP Cross-section F 7.85 (17,81) 0.000
Port throughput (TTL) = Container throughput/berth (3) Cross-section Chi-square 101.261 17 0.000
Industrial transformation and upgrading capacity (SJYB) = Share (4)
of employment in the tertiary industry Next, the Hausman test is used to select the individual random effects
Education level (TYTR) = Investment in education (5) and the individual fixed effect model. Hausman test result is 82.380 with
Technology level (KJYR) = Technology investment (6) p-value 0.000, which is less than 0.05. Accordingly, the original
hypothesis is rejected and a fixed effect model is established. Hence, it is
Using regression analysis, we establish the panel regression model and evident that the individual fixed effect model should be employed in this
analyse the selected factors. We establish the following hypotheses: study.
H1: The level of port economic development plays a positive role in Next, we employ the F-test to determine whether to use the variable
PECC. interceptor or variable coefficient model. From Table 5, it can be seen that
H2: Port throughput plays a positive role in PECC. the adjusted R-squared is 0.613, the Goodness of Fit is better, F-value is
H3: In the short term, industrial transformation and upgrading have an 8.709, and the corresponding p-value is 0, which indicates that the model
insignificant impact on PECC. Conversely, in the long term, is statistically significant. By analyzing the panel data regression results
industrial transformation and upgrading have a positive impact on that affect the PECC, we obtain:
PECC.
H4: Improvement in educational level can promote PECC Table 5
improvement. Panel regression results
H5: Technical input plays a positive role in PECC. Variable Coef. Std. Err. t P-value

4.3. Empirical Results _cons -1.194 0.648 -1.842 0.068*


SGDP 0.023 0.008 2.774 0.007***
We apply the panel unit root tests and find that the panel data of each TTL 0.479 0.042 11.433 0.000***
variable is stationary. Moreover, there is no unit root in the horizontal SJYB -0.008 0.010 -0.774 0.440
sequence of the panel data of each variable.
KJYR -0.0004 0.0003 -1.535 0.128
As shown in Table 3, the results of the Pedroni test reveal that Panel
TYTR -0.0002 0.0010 -2.012 0.047**
PP, Panel ADF, Group PP, and Group AD were significant at 1% level,
R-squared 0.692
and that the Kao test yielded a significant result. According to the
comprehensive analysis, there is a cointegration relationship among the F 8.709
variables in the two panel data models. The regression model is based on Adj R-squared 0.613
cointegration estimation thereby yielding more accurate estimation results. F Significant level 0.000
A Study on the Influence Mechanism of Port Environmental Carrying Capacity 195

Note: *, **, *** respectively represents statistical significance at the 1%, 5%, and 10% Through the analysis of the data regression results, we reach the
The statistical results can be concluded as following: following conclusions:
(1) The coefficient of impact of port economic development (SGDP) on First, the level of port economic development plays a positive role in
PECC is 0.023 and is significant at 10%. This is consistent with H1: PECC; the higher the level of development, the higher is the impact of
SGDP has a positive impact on PECC, i.e., the GDP created by the port port development support such that a higher port output can improve the
industry can promote PECC improvement to a certain extent. With every PECC. In addition, according to the “EKC” hypothesis, the positive
percentage increase in the level of economic development, the PECC impact of the economic development on the PECC explains that the
increases by 0.0229 percentage points. The higher the level of economic development is at a high level and in the rising phase of the U-
development, the higher is the impact of port development support such type development. The main reason for this is that economic development
that a higher port industry output can improve the PECC. led to economic system changes, improved resource utilization, and
(2) The coefficient of impact of the explanatory variable port enabled enterprises to change their mode of production in order to pursue
throughput capacity (TTL) on the PECC is 0.479 and is negative at 1% efficient green development.
significance levels. This is consistent with H2: Port throughput has a Secondly, port throughput has a positive impact on PECC. On the one
positive impact on PECC. With every percentage point increase in port hand, improvement of port throughput has improved operational
throughput capacity, the PECC increases by 0.479 percentage points; the efficiency, reduced the consumption of resources and environment,
higher the port throughput, the higher the PECC. liberated the remaining resources, reduced input, and improved the ECC
(3) The coefficient of impact of technology investment (KJTR) on to a certain extent. On the other hand, the improved efficiency has further
PECC is negative and does not pass the significance tests thereby increased output and enhanced the input-output ratio thereby improving
indicating that the impact of science and technology investment on the the PECC.
port environment is not obvious. This does not prove H3 whereby Thirdly, the influence coefficient of science and technology investment
investment in science and technology plays a positive role in the PECC. on PECC is negative, which shows that the effect of science and
(4) The impact coefficient of education investment (JYTR) on PECC is technology investment on port environment is not obvious. This differs
-0.0002. It is negative and statistically significant at 5% significance from the hypothesis of this study probably because, on the one hand, the
levels, i.e., investment in education has a negative influence on PECC. investment in science and technology was merely capital investment and
This is the opposite of H4. Hence, with every percentage point increase in the ports did not really absorb the core technology and management
investment in education, the PECC decreases by 0.0002 percentage methods. As such, ports could not establish their own technical systems
points. The negative effect of educational investment on PECC is not and self-innovation ability remained low indicating that the blind pursuit
obvious and it is not difficult to change the impact of education of higher technology cannot guarantee high returns and high efficiency.
investment from negative to positive. On the other hand, the technology investment may have been more
(5) The impact coefficient of industry upgrade (SJYB) on PECC is focused on improving existing benefits versus combining the technology
negative but did not pass the significance test. Hence, the result does not investment with existing environmental protection technology to enhance
meet H5: Industrial transformation and upgrading play a positive role in the PECC.
the PECC. This implies that the transformation and upgrading of the port Fourthly, educational input has a negative impact on ECC contrary to
industry did not have a significant impact on the PECC. While the port H4 of this study. The main reason may include, on the one hand, the fact
belongs to the tertiary industry, it is in fact, the second industry. The that investment in education increased while the cycle became longer such
industry transformation and upgrading only occurred at the surface and that the appropriate return cannot be obtained within a short period. On
did not achieve real transformation and upgrading. the other hand, poor professionalism in the education sector cannot
cultivate strong professional talent, resulting in a very low talent output
rate. In addition, the negative impact of educational input on PECC is not
5. Analysis of Results obvious. This indicates that it is not difficult to offset this negative impact
and to realize the effective output of education inputs.
The main factor influencing the comprehensive environmental carrying Lastly, the transformation and upgrading of the port industry did not
capacity of the port is the bearing capacity of the scale, i.e., the size of the have a significant impact on the PECC. On the one hand, the port industry
port environment construction led to changes in PECC. This indicates that upgrade is not obvious, according to the “follow the cost” principle. In the
most of the economies of scale in the environmental construction process short term, the impact of industrial transformation and upgrading on ECC
of each port did not produce incremental effects. is not significant. Conversely, in the long term, industrial transformation
Economic development level and port throughput capacity can promote and upgrading have a positive impact on PECC. This also suggests that it
the enhancement of PECC. To a certain degree, education investment has is difficult to achieve industrial upgrading in the port of China. Although
a negative impact on PECC; weak professionalism in educational the port belongs to the tertiary industry, it is generally characterized by
investment and longer return periods are the main reasons for the negative high energy consumption and high pollution output. Hence, without
impact. Moreover, technological innovation and the degree of industrial changing the very essence of the industry, real transformation cannot be
transformation and upgrading have no obvious effect on the carrying achieved. On the other hand, the impact coefficient is negative indicating
capacity of the port, indicating that neither has the investment in science that the port industry did not really achieve transformation and upgrading;
and technology achieved effective output, nor did the port focus on the focus remains on the “high consumption, high pollution” industry.
introducing environmental protection technology and improving their own
management systems. In fact, the port industry did not achieve real
transformation and upgrading; it remains lower/downstream in the supply 6. Recommendations
chain and engages in high loss, low value-added industries.
196 A Study on the Influence Mechanism of Port Environmental Carrying Capacity

Based on the empirical results and conclusions of the static into account the regional ecological environment, social resources,
measurement, dynamic evolution, and panel data analysis of PECC economic development, and other factors, in order to maintain the positive
combined with the status of port development, this paper outlines the impact of economic growth on the environment. Formulate the plan that
following specific recommendations to improve ECC: meets the future development requirements of the port environmental and
First, introduce advanced production technology and gather advanced ecological protection. Improve the marine environmental supervision and
management experience. Although recent years have seen rapid management system, effectively manage the port shoreline resources,
development in the port industry, it remains dominated by heavy industry avoid blind construction and repeated development, and prevent
as well as processing and manufacturing. Most enterprises are in the lower environmental pollution at the source.
rungs of the value chain being among the lowest in value creation and The ports should recognize their own port conditions based on their
engaging in production and processing with low technical content. The ECC characteristics, improve the comprehensive PECC, and thus promote
empirical conclusion of this study reveals that technological investment the construction of port ecological civilization. Moreover, ports should
has a negative effect on port carrying capacity. This suggests that the ports pay attention to the dynamic trend of the EKC curve so as to maintain a
did not focus on introducing or learning environmental protection positive impact of economic growth on the environment. Finally, it is
technology; instead, they blindly focussed on improvements in production recommended to continue to focus on the measurement and evaluation of
efficiency without perfecting their management systems. Therefore, in the the PECC, understand the deficiencies in the development of the port
future development process, the port should vigorously introduce itself, formulate scientific development strategies, and undertake positive
advanced production technology to improve self-innovation ability, learn measures to continuously improve the port’s sustainable development
from foreign advanced management experience, and transform from capacity. Integrating social and economic development, resource
extensive to intensive and from being high loss-high pollution to low environment, human activities, and other factors are necessary to promote
consumption-low pollution. In other words, we should use advanced balanced, sustainable development between the port economy and
production technology and management methods to promote the PECC. environmental protection, and to accelerate the realization of an
Moreover, we should also attempt to improve the port technology ecologically civilized port.
progress carrying index, i.e., the index of port environment technology
application continuity, in order to improve the comprehensive PECC.
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