An Empirical Analysis of the Impact of Green Investment on China's Green Development Level: Based on Mediating and Spatial Spillover Effects

Abstract

This study, based on panel data from 30 provinces in China from 2007 to 2020, employs the Super Efficiency SBM model to measure the green total factor productivity of each province. By constructing mediating effect models and spatial econometric models, it conducts an empirical investigation into the mechanisms and spatial characteristics of how green investments promote China's green development. The results reveal that, at an overall level, green investments play a positive role in influencing China's green development. Regarding the influence pathways, innovative green technology advancements, both in terms of inventions and improvements, are important mediating channels through which green investments promote green development, with inventions having a stronger mediating effect. In terms of regional heterogeneity, green investments significantly promote green development in the eastern and central regions, while their promotion effect in the western regions is less pronounced. Concerning spatial spillover characteristics, green investments not only drive local green development levels but also stimulate the green development in surrounding areas through spatial spillover effects.