Green Total Factor Productivity Growth: Policy-Guided or Market-Driven?

Abstract

The green growth mode of modern economy is affected by both policy and market, but previous studies have lacked a comparison between the two effects on green economy development. Which is the leading factor of green growth: policy or market? Using the Panel Smooth Transition Regression (PSTR) model and the twelve-year data of more than 200 prefecture-level cities in China, we compared and analyzed the linear and non-linear effects of environmental regulation and marketization degree on green total factor productivity (GTFP). The results show that: (1) both environmental regulation and marketization degree have a non-linear promoting effect on GTFP. (2) GTFP is mainly market-driven rather than policy-guided. (3) Environmental regulation and marketization promote the improvement of GTFP through the industrial upgrading effect and the innovation development effect, respectively. This paper makes up for the comparative analysis gap of factors in the field of green growth and extends from the single determination of influencing factors to the importance of the comparison of influencing factors with the transition perspective. The conclusions provide a reference for the green development of countries and regions, emphasizing the importance of green development policies adapting to local conditions and time and providing evidence for market-oriented green economy development.

Exploring the impact mechanism of executives’ environmental attention on corporate green transformation: evidence from the textual analysis of Chinese companies’ management discussion and analysis

“…Achieving corporate green transformation means improving financial, environmental, and social responsibility performance. Referring to studies by Wang et al ( 2022a , b ) and Jiang and Lan ( 2022 ), we use the total corporate responsibility score from the Hexun.com Database as an indicator of CGTP.…”

“…Based on the firm “Porter effect” theory, the innovation compensation effect can contribute to enterprises achieving environmental and economic benefits. Wang et al ( 2022a , b ) believe that executive environmental attention positively affect corporate green innovation strategies and that the more environmental attention allocated, the more green innovation patents a company has. Green products are the manifestation of satisfying the green concept of consumers, not only to optimize internal costs but also to promote green upgrading of production structures.…”

“…Therefore, stakeholders in the market economy focus their attention on environmental governance. It is not only conducive to creating a good production and living environment by improving environmental quality but also enhances the green economic efficiency and green total factor productivity of regions and industries, thereby making it possible for the whole society to share both environmental and economic dividends (Wang et al 2022a , b ). In 2020, the Chinese government proposed the green development goals of “carbon peaking” and “carbon neutrality,” which became a guideline for society to implement green transformation (Vasiev et al 2020 ; Steblyanskaya et al 2022 ).…”

Digital economy, entrepreneurial activity, and common prosperity: Evidence from China

“…The number of people per square kilometer is used to measure population density. Fiscal revenue and expenditure are expressed as the ratio of general public budget revenue to general public budget expenditure (Wang et al, 2022;Yang et al, 2022;Yang et al, 2021).…”

The Role of Supervisory Board Heterogeneity on Corporate Irregularity: New Insights and Management Opportunities

“…Furthermore, the term External Supervisor refers to a supervisor who is an outsider of the company, emphasizing the supervision from external forces not directly related to the company's operation. An external supervisor can usually be confused with the concept of independent supervisor, except that external supervisors are more prominent in "professionalism" and most of them are social professionals, which helps to balance the overly disparate power in control [40] and prevents controlling shareholders from seeking private interests [41]. Theoretically, external supervisors should be less susceptible to interference and influence from directors or managers, avoiding collusion to create new insider control and reducing the occurrence of irregularities.…”