The Effect of Environmental Information Disclosure on Green Total Factor Productivity: Evidence from Quasi-Natural Experiments on Cities in China

Abstract

The relationship between environmental regulation and green economic growth has become a focal issue in China. This study utilizes the environmental information disclosure (EID) policy as a quasi-natural experiment in the Chinese context. Using a sample of 280 Chinese cities from 2003–2019 and measuring urban green total factor productivity (GTFP), the propensity score matching and difference-in-difference methods are applied to assess the impact mechanism of EID on urban GTFP in China. The results show that, first, the urban GTFP showed a decreasing trend from 2003 to 2008 and a general increasing trend from 2009 to 2019. The EID policy had a significantly positive impact on GTFP, and this finding remained robust after a series of tests. Second, the policy effect of EID was more pronounced in large and medium-sized cities than in small cities and eastern and central regions. The mechanism analysis shows that a positive effect from EID on GTFP in cities can be achieved through green technological innovation and industrial agglomeration.