Towards cities' green growth: The combined influence of economic growth targets and environmental regulations

Abstract

Cities' green growth hinges on both sustained economic growth and ongoing ecological improvement. This study uniquely examines the roles of economic growth targets and environmental regulations in fostering this growth. Using China as a case study, we found that economic growth targets have a limited impact on cities' green growth due to varying outcomes from resource allocation strategies aimed at meeting these targets. A closer look at China's economic growth targets management model reveals that the pressures from meeting the ill-fitted economic growth targets often leads to green growth setbacks, with local governments prioritizing economic over green growth by relaxing environmental regulations. Therefore, we propose that cities can achieve a balance by setting realistic economic targets, with the central government enhancing oversight of local environmental regulations and adopting an innovation-driven development strategy for economic growth targets. This approach can make economic targets and environmental regulations work together to achieve green growth. Our empirical findings offer new insights into cities' governance for sustainable development.