Does industrial relocation impact green economic efficiency? Evidence from China’s energy-intensive industries

Abstract

Utilizing the latest multi-regional input-output (MRIO) tables and spatial econometric model, this paper measures the inter-provincial relocations of energy-intensive industries (REI) in China and investigates its impact on regional green economic efficiency (RGE). The results indicate that the primary inflow areas of energy-intensive industries are northern coastal, central, and northwestern China, while the main outflow areas are southeastern coastal and southwestern China. The net inflow of energy-intensive industries negatively affects local RGE but positively affects neighboring provinces. However, at the national, REI contributes to improving the overall RGE. This improvement effect varies regionally and has been notably attenuated after the implementation of the Belt and Road Initiative (BRI). Additionally, this paper verifies that the crowding-out effect on R&D investment is an important channel through which REI affects RGE.