How does International Transport Corridor affect regional green development: evidence from the China-Europe Railway Express

Abstract

The operation of the China Railway Express (CRE) provides a quasi-natural experiment to test the impact of the new International Transport Corridor on regional green development. Based on the panel data for 265 prefecture-level cities in China and the China Patent Full-Text Database from 2003 to 2018, this study uses the SBM-DEA model to measure urban green economic efficiency (GEE). Then, we adopt the spatial Difference-in-Difference model to examine the effect of operating the CRE on the regional GEE. Moreover, the impact mechanism of the CRE on GEE is investigated from innovation and energy conservation perspectives. Finally, we consider the impact of the heterogeneity of factor endowments in different cities on green development. We found that operating CRE can improve regional GEE as a new overland trade channel between Europe and Asia. The impact mechanism test shows that promoting regional innovation and reducing urban energy intensity are two effective ways for CRE to improve regional GEE. In addition, in resource-intensive areas and areas with inadequate infrastructure, the marginal effect of CRE on promoting green development is more obvious. The conclusions can provide policy inspiration for countries along the CRE to achieve green economic development by operating CRE.