Exploring Financial Agglomeration and the Impact of Environmental Regulation on the Efficiency of the Green Economy: Fresh Evidence from 30 Regions in China

Abstract

This research measures the green economic efficiency (GEE) of 30 regions in China from 2009 to 2021 and verifies the financial agglomeration and environmental regulation impacts on GEE with the Tobit model. The conclusions are as follows: (1) The average GEE value in China is 0.596—which is still at a low level—and is highest in the eastern region and lowest in the western region. (2) Financial agglomeration can promote GEE in the whole country, in both the eastern and western regions; however, the western region effect is very low. In the central region, due to the “siphon effect” produced by the eastern region, the financial resources concentrated in the east thus suppress GEE. Environmental regulation inhibits GEE nationally and in the western region while showing a promotion effect in the eastern and central regions, but it is not significant in the central region. (3) Industrial structures inhibit GEE nationally and in the central and western regions, while industrial structures promote GEE in the eastern region; the GDP (gross domestic product) per capita also inhibits GEE nationally and in the central and western regions and promotes GEE in the eastern region. Government intervention inhibits green economic development in all regions, and urbanization inhibits GEE nationally and in the central and western regions while promoting GEE in the eastern region.