Abstract

This study conducted quasi-natural experiments based on the panel data of 239 prefecture-level cities in China from 2005 to 2017. The difference-in-difference (DID) and mediation effect model are used to test the impact and mechanism of the construction of national eco-industrial demonstration parks (NEDP) on green total factor productivity (GTFP). The results show that: (1) The construction of NEDP has significantly improved the urban GTFP, and the conclusion is still valid after running the robustness test. (2) Mechanism analysis shows that the construction of NEDP has improved GTFP through technological innovation and industrial structure upgrading. (3) The heterogeneity results reveal that NEDP has a significant positive effect on GTFP in the central and western regions, while the effect was insignificant in the eastern region. Moreover, NEDP significantly contributes to GTFP in resource-based and non-resource-based cities, while the contribution of resource-based cities is greater than that of non-resource-based cities. This study provides a reference for China to further promote the construction quality of NEDP and green development.

Highlights

  • Over the years, the ‘GDP–only’ performance assessment system and the crude economic growth strategy have brought about rapid economic growth in China [1]

  • Our findings are consistent with Song and Zhou (2021) that economic growth pressure weakens the positive effect of national eco-industrial demonstration parks (NEDP) on green total factor productivity (GTFP) [96]

  • Accurately assessing the impact of construction of national eco-industrial demonstration park (NEDP) on regional green economic growth is a crucial issue of concern for all sectors of society

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Summary

Introduction

The ‘GDP–only’ performance assessment system and the crude economic growth strategy have brought about rapid economic growth in China [1]. As China is currently undergoing a critical transformation from a phase of high growth to high-quality development, pursuing green development is the key to resolving the paradox of economic development and environmental protection and achieving sustainable development In this context, how does NEDP affect GTFP, and what are its pathways? The mediating effect model is applied to examine the impact mechanism of NEDP on GTFP in the light of technological innovation and industrial structure upgrading, which provides some reference for the precise implementation of pilot policies. This study further analyses the heterogeneous effects of NEDP on GTFP under different geographical locations, and resource endowments, in order to provide an empirical reference for future pilot policy formulation based on local conditions.

Theoretical Analysis and Research Hypothesis
Model Specification
Dependent Variable
Core Explanatory Variables
Control Variables
Mediation Variables
Analyzing Empirical Results
Parallel Trend Test
Analyzing Benchmark Regression Results
Robustness Test
Transmission Mechanism Test
Analyzing City Geographic Location Heterogeneity Results
Analyzing City Type Heterogeneity Results
Conclusions
Academic Implications
Future Considerations
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