Has the ecological civilization pilot promoted the transformation of industrial structure in China?

Abstract

Industrial structure transformation is important for realizing Chinese modernization, and ecological civilization is necessary for building a beautiful China. How to use the construction of ecological civilization to realize industrial structure transformation is a major issue for the economic development of China and other developing countries. The difference-in-differences method was used to evaluate the impact of the ecological civilization pilot policy (ECPP) on industrial structure transformation. The three-stage mediating effect method is used to explore the mechanism channel. Through heterogeneity discussion and spatial spillover analysis method, the effects of ECPP were further understood. The study reveals the following: Overall, the ECPP has promoted the transformation of the industrial structure. Specifically, the ECPP has a significant positive impact on industrial structure rationalization but a negative impact on industrial structure advancement. Several robustness checks support this finding. Second, the mechanism channels are primarily achieved through environmental investment, green finance infusion, and congestion alleviation. Third, good central-local relationships can enhance the trend toward industrial structure rationalization, while unfavorable relationships may pose hindrances to industrial structure advancement. In addition, the effect of the ECPP varies depending on the population density and environmental pollution. Lastly, the ECPP has a spatial positive spillover effect promoting industrial structure rationalization. The results above provide additional information about the effects of ECPPs on industrial structure transformation, both positive and negative, and help the ecological civilization strategy system be adjusted promptly.