Inhibit or promote: The inverse-U-shape effect of greenspace on economic growth

Abstract

Discovering a nature-friendly economic growth pattern is a critical issue in the development of human society. This paper combines satellite remote sensing data and economic statistics of 1843 counties in China from 1999 to 2019 to identify the impact of greenspace on county-level economic growth. The findings are as follows: First, It is the cutting-edge evidence of an inverted U-shaped impact of greenspace on economic growth, with the inflection point between 0.5 and 0.55. A higher level of greenspace positively impacts economic growth and vice inhibits, as long as it is below the inflection point. Second, economic growth requires a co-effort between construction and greenspace maintenance. On average, the greenspace level in Chinese counties falls below the inflection point. By bringing the average greenspace level to the inflection point, the average GDP of each county in China could increase by approximately 1.38 billion yuan, resulting in a per capita GDP increase of 342.13 yuan. Third, the impact of greenspace on the primary and tertiary industries is more significant. The results provide theoretical and empirical support for the win-win situation of environmental protection and economic growth.