Does economic growth target constraint put pressure on green energy efficiency? Evidence from China.

Abstract

Building a sustainable energy system and achieving sustainable economic growth has always been China's development goal. However, under the promotion incentive and information asymmetry, local governments may choose to sacrifice the ecological environment to maintain expected economic growth goals. This paper analyzes the relationship between economic growth targets and green energy efficiency (GEE) by using panel data models and spatial econometric techniques. Moreover, the mediation effect model and threshold effect model are used to study their influence mechanism and the possible nonlinear relationship. The results indicate that economic growth targets reduce the efficiency of GEE. The impact of environmental regulation on GEE is "U" shaped. Environmental regulation plays a positive moderation role between economic growth targets and GEE. Additionally, higher levels of technological innovation, industrial upgrading, and environmental regulation result in a reduction in the negative effects of economic growth targets on the GEE. However, the improvement in the foreign direct investment can increase the negative influences of economic growth targets on the GEE.