Malmquist-Luenberger Productivity Index Research Articles

Carbon productivity growth in China’s transportation industry: empirical analysis using a global Malmquist-Luenberger productivity index based on an endogenous directional distance function

In China, transportation is one of the fastest-growing industries for CO2 emissions, so scientifically measuring the carbon total factor productivity growth of this industry could provide accurate guidance to achieve sustainable development. To this end, this study proposes an endogenous directional distance function (DDF) approach using a common directional vector based on satisfaction degree, and then integrates it with the global Malmquist-Luenberger productivity index (GMLPI) to measure the carbon total factor productivity growth. We employ this novel endogenous DDF-based GMLPI approach to evaluate and decompose the carbon total factor productivity growth of China’s 30 provincial-level transportation industries from 2010 to 2020. The empirical results show that the carbon total factor productivity of 14 provinces improved during 2010–2020, and 28 provinces from 2015 to 2020. Efficiency improvement and technological progress have become the joint drivers for the carbon total factor productivity growth. Targeted policy implications are provided.

Can ESG ratings promote green total factor productivity? Empirical evidence from Chinese listed companies

Against the backdrop of frequent extreme climates and international consensus on green and low-carbon development, Environmental, Social, and Governance (ESG) has progressively drawn increasing attention. Integrating the perspectives of stakeholder theory and signaling theory, this study employed the Malmquist-Luenberger productivity index, fixed-effects regression model, mediating effect model, propensity matching score difference-in-differences model, and a two-stage least squares method. Using the research sample of Chinese A-share listed companies between 2011 and 2021, the mechanisms linking ESG ratings and each component (the individual scores of E, S, and G) with the green innovation and green total factor productivity (GTFP) of enterprises were investigated. This study conducted heterogeneity analysis integrating regional, industry, and enterprise dimensions, fully considered the potential endogeneity issues, and conducted multiple robustness tests by exploring alternative approaches, replacing the measures of indicators, and reducing the research sample. The results demonstrated that higher ESG ratings significantly improved the green innovation and GTFP of enterprises. This improvement was achieved through the stakeholders and signaling mechanisms, and was more prominent in economically underdeveloped regions, patent-intensive industries, and industries with lower environmental risk. In addition, the impact varied among enterprises with different property rights. The findings elucidate the pathways through which soft regulation influences micro-level corporate decision-making, making significant contributions to the literature. Furthermore, this study provides a theoretical foundation and policy reference for constructing a positive feedback loop mechanism for ESG ratings and promoting the green transformation and upgrading of enterprises.

Green Energy Pathways Towards Carbon Neutrality

AbstractTrying to reach carbon neutrality is by no means plain sailing in times of energy crisis, price volatility, and war. The European Green Deal (EGD) prioritizes green pathways, but it is not enough when it copes with greenhouse gases (GHGs). The present research utilizes the Malmquist–Luenberger productivity index (MLPI) to estimate advancements in total factor productivity (TFP) in the European Union (EU). The study uses panel data from 1995 to 2019, in addition, there is comparison between two periods: 1995 – 1996 and 2018 – 2019, would provide important information about TFP progress or recession during a turbulent European era. Two MLPI models are applied, one that utilizes only non-renewable energy sources (NRES), while the other adopts renewable energy sources (RES). Encompassing inputs such as: electricity generation, labour force, and gross fixed capital formation (GFCF); desirable output: gross domestic product; and undesirable outputs: carbon dioxide (CO2) and methane (CH4). There is average productivity progress, more specifically the MLPI average productivity for NRES and RES is 2.14% and 7.34% respectively, meaning that the RES adoption leads to greater productivity performance by almost three times. This novel analysis might offer useful and practical information to policymakers through the measuring of TFP in order to effectively attain and accomplish carbon neutrality objectives.

The heterogeneous impacts of environmental technologies and research and development spending on green growth in emerging economies: the moderating role of financial globalization

Introduction: Understanding the heterogeneous impacts of environmental technologies (ETs), research and development (RD) spending and financial globalization (FG) on green economic growth (GEG) is worthwhile to promote progress toward GEG. Besides, exploring the moderating role of FG is essential to uncover the nuanced dynamics that shape the relationship between ET, RD, GEG, and the influence of global financial integration. Thus, this study examines the effects of ET, RD and FD on GEG in emerging market economies (EMEs). In addition, we investigate the moderating role of FG on the effects of ETs and RD on GEG.Methods: The method of moments quantile regression (MMQR) is applied using a fixed effects model that can capture distributional heterogeneity and nonnormality concerns for the panel of 25 EMEs from 2000 to 2019. In addition, other alternative models are applied to conduct robustness analysis. We use green total factor productivity (GP) to proxy for GEG using the Malmquist–Luenberger Productivity Index (MLPI) strategy based on the directional distance function (DDF).Results and discussion: The findings imply that ETs significantly impact GEG, revealing evidence that promoting environmental innovation positively contributes to GEG progress in EMEs. Likewise, RD promotes GEG progression in EMEs. Additionally, FG positively impacts GEG. FG also positively moderates the effects of ETs and RD on GEG, implying that countries open to FG can better harness the positive roles of investment in ETs and RD on GEG in EMEs. Therefore, policymakers should develop prudent policies to encourage ETs and RD to promote GEG in EMEs, which aligns with the goals of controlling climate variation (SDG-13) and fostering innovation (SDG-9) to promote GEG in EMEs.

Digital economy and green total factor productivity in China.

The development of information technology has created conducive conditions for the digital economy. The digital economy is regarded as a critical pathway for transforming traditional economic models. Green total factor productivity serves as an indicator for assessing the quality of economic development. During pivotal periods of economic transition, the digital economy and green total factor productivity have emerged as two prominent themes for achieving sustainable economic development. But the impact of digital economy on green total factor productivity is less discussed. Innovation environment refers to a confluence of conditions shaped by factors such as talent, funding, cultural atmosphere and government policies, all of which collectively support innovative activities within a region. The institutional environment encompasses the aggregate of economic, political, social, and legal rules. Currently, there is little discussion on bringing innovation environment and institutional environment into the impact of digital economy on green total factor productivity. To fill the research gap, this paper adopts the Slack based measure-Directional distance function model and Malmquist-Luenberger productivity index to measure green total factor productivity in each region based on the panel data collected from 30 provinces in China from 2004 to 2019. Generalized Method of Moments method is constructed to carry out an empirical study on the impact of digital economy on green total factor productivity. This paper constructs a panel threshold model with innovation environment and institutional environment as threshold variables. In further analysis, this paper employs panel quantile regression for the empirical analysis of the impact of the digital economy on green total factor productivity. Further analysis elucidates the evident disparities in the influence of the digital economy on green total factor productivity at various levels. The research results can provide a guide for discussing the green value of the digital economy and its role in fostering the development of a green economy.

Assessment of low-carbon tourism development from multi-aspect analysis: a case study of the Yellow River Basin, China

Climate change has become an unavoidable problem in achieving sustainable development. As one of the major industries worldwide, tourism can make a significant contribution to mitigating climate change. The main objective of the paper is to assess the development level of low-carbon tourism from multi-aspect, using the Yellow River Basin as an example. Firstly, this study quantified tourism carbon dioxide emissions and tourism economy, and analyzed their evolution characteristics. The interaction and coordination degree between tourism carbon dioxide emissions and tourism economy were then analyzed using the improved coupling coordination degree model. Finally, this study analyzed the change in total factor productivity of low-carbon tourism by calculating the Malmquist–Luenberger productivity index. The results showed that: (1) the tourism industry in the Yellow River Basin has the characteristics of the initial environmental Kuznets curve. (2) There was a strong interaction between tourism carbon dioxide emissions and tourism economy, which was manifested as mutual promotion. (3) The total factor productivity of low-carbon tourism was increasing. Based on the above results, it could be concluded that the development level of low-carbon tourism in the Yellow River Basin has been continuously improved from 2000 to 2019, but it is still in the early development stage with the continuous growth of carbon dioxide emissions.

Malmquist–Luenberger Productivity Index for a Two-Stage Structure in the Presence of Undesirable Outputs and Uncertainty

Network Data Envelopment Analysis (NDEA) models assess the processes of the underlying system at a certain moment and disregard the dynamic effects in the production process. Hence, distorted efficiency evaluation is gained that might give misleading information to decision-making units (DMUs). Malmquist–Luenberger Productivity Index (MPI) assesses efficiency changes over time, which are measured as the product of recovery and frontier-shift terms, both coming from the DEA framework. In this study, a form of MPI involving network structure for evaluating DMUs in the presence of uncertainty and undesirable outputs in two periods of time is presented. To cope with uncertainty, we use the stochastic p-robust approach and the weak disposability of Kuosmanen (American Journal Agricultural Economics 87 (4):1077–1082, 2005) proposed to take care of undesirable outputs. The proposed fractional models for stages and overall system are linearized by applying the Charnes and Cooper transformation. Finally, the proposed models are applied to evaluate the efficiency of 11 petroleum wells to identify the main factors determining their productivity, utilizing the data from the 2020 to 2021 period. The results show that the management of resource consumption, especially equipment and capital, is not appropriate and investment is inadequate. Although the depreciation rate of capital facilities in this industry is high, the purpose of the investment is not to upgrade the level of technology.

Quantitative analysis of spatiotemporal disparity of urban water use efficiency and its driving factors in the Yangtze River Economic Belt, China

Study regionYangtze River Economic Belt, China Study focusAs the major national strategic development area of China, there have always been vital problems about imbalance of the water resources distribution and the disparity of economic levels in YREB. Quantitative analysis of water use efficiency (WUE) is essential to the rational use of water resources, as well as the sustainable development. In this study, a WUE evaluation index system for prefecture-level cities in the YREB was constructed, and Super-Efficiency Data envelopment analysis Slacks-Based Measure (DEA-SBM) model, Global Malmquist-Luenberger productivity index, combined with geographically weighted regression model were utilized to measure and identify the spatiotemporal evolution characteristics of WUE and its influencing factors. New hydrological insights for the regionFrom the temporal perspective, the WUE manifests a significant upward trend from 2005 to 2020, and the growth presents lower reach > middle reach > upper reach; in the spatial pattern, the WUE has significant spatial divergence characteristics, high WUE mainly occurred in developed leading cities, while developing cities in the midstream and upstream tended to be inefficient; various effects on WUE were also analyzed, highlighting that technical advancement was the key driver of WUE evolution. Then the negative effects of industrial structure and urban environment was becoming more and more significant. Finally, effective measures for upstream, middle and downstream cities in the YREB were discussed.

Analysis of transportation CO2 emission efficiency in the Yangtze River Economic Belt in China

ABSTRACT The transportation industry’s CO2 emissions and its main drivers are important for achieving sustainable development. With data from the Yangtze River Economic Belt (YEB) between 2004 and 2020, the efficiency of CO2 emissions is investigated by the super efficiency epsilon-based measurement method (super-EBM) and the Global Malmquist Luenberger Productivity Index (GML). The influencing factors on the different efficiency levels are explored by the panel quantile regression. This study shows that the overall CO2 emissions efficiency is not high, and the efficiency in different regions is largely consistent with the regional economy level. COVID-19 may reduce urban transport carbon emissions in the Yangtze River Economic Belt in 2020, as reflected by the reductions in average emissions and emissions efficiency. Findings also suggest that the influence of the number of private vehicles per 10,000 people on efficiency is positive at low and middle quantiles, and negative at high quantiles. Besides, the per-capita GDP, energy intensity, and transportation service structure negatively influence the efficiency at all quantiles, whereas urbanization and transportation intensity are positively related to the emissions efficiency.

The impact of recycling on the productivity of Municipal Solid Waste: a comparison of the Malmquist and Malmquist-Luenberger Productivity Indexes

ABSTRACT Enhancing the economic and environmental efficiency of municipal solid waste (MSW) management is crucial for transitioning to a circular economy and achieving cost-efficient and sustainable waste practices. In this study, we introduce an innovative approach to examine the influence of MSW recycling on waste performance over multiple years. We employ a non-parametric method to assess and compare the Malmquist Productivity Index (MPI) and the Malmquist-Luenberger Productivity Index (MLPI) across 143 municipalities in Chile from 2015 to 2019. The findings reveal a positive trend in both MPI and MLPI. The average eco-productivity change (MLPI) is relatively lower than the average productivity change (MPI) throughout the evaluated years. The aggregated scores for MPI and MLPI between 2015 and 2019 stand at 2.73 and 1.33, respectively. The primary driver of productivity change is attributed to technical advancements, leading to a shift in the efficient frontier, while eco-productivity change predominantly arises from efficiency enhancements. This implies that municipalities have employed diverse strategies to enhance their economic and environmental performance. The results and implications of this study hold significance for policymakers at regional and local levels, offering valuable insights for optimising MSW management within the context of a circular economy.

Interplay of Urbanization and Ecological Environment: Coordinated Development and Drivers

The interplay between urbanization and ecological environmental efficiency has gained increasing significance in the context of sustainable development, as rapid urban growth poses challenges to resource consumption, greenhouse gas emissions, and the overall ecological well-being of urban areas. Understanding and analyzing the coordinated development of urbanization and ecological environmental efficiency, as well as assessing the influence of drivers on this relationship, is crucial for developing effective policies and strategies that promote environmentally sustainable urban development. This study establishes an urbanization index based on four key aspects: economy, society, population, and ecology. This investigation focuses on 30 provinces in China spanning from 2011 to 2020. The following methods are applied: global Malmquist–Luenberger productivity index, entropy method, TOPSIS model, coupled coordination degree model, panel-corrected standard error (PCSE), and feasible generalized least squares (FGLS) models. The empirical results demonstrate a favorable level of coordinated development between urbanization and the ecological environment overall, with more pronounced regional evolution trends. The trade openness, energy structure, and digitalization level play significant roles in effectively promoting the coordinated development of urbanization and the ecological environment to varying extents. The growth of trade openness and digitalization level promote coordinated development between urbanization and the ecological environment by 0.125 and 0.049, respectively. However, the increase in the energy structure decreases it by 0.509. These results have significant implications for policymakers, urban planners, and stakeholders, emphasizing the need for a balanced approach that prioritizes ecological environmental protection in urbanization efforts. This study underscores the importance of sustainable urban development strategies to ensure long-term ecological and environmental sustainability.

RETRACTED ARTICLE: Digital Economy, Technical Innovation and China’s Green Total Factor Productivity Growth

This study investigates the impact of the digital economy (DE) on green total factor productivity (GTFP) and its transmission mechanism. Using panel data from 256 cities in China from 2009 to 2020, the study examines a directional distance function and the Malmquist–Luenberger productivity index to estimate the GTFP growth and constructs an ordinary least squares model to explore the impact effect and mechanism. Three findings are drawn from the estimation results: (1) The DE has significantly promoted GTFP. (2) Technological innovation has significantly aided in the promotion of GTFP. (3) By encouraging technological innovation, the DE further enhances the promotion of GTFP, verifying the DE → technology innovation → green conduction mechanism of total factor productivity.

Environmental assessment of hydrogen: does hydrogen matter for environmental efficiency improvement?

ABSTRACT This paper first measures the level of environmental efficiency (EE) in 72 countries between 2001 and 2019 by adopting the Global Malmquist-Luenberger productivity index in the framework of the super slack-based-measure model. Then, by using the instrument variable-generalized method of moments (IV-GMM) approach, we examine the role of hydrogen development in increasing EE. We also pay attention to the asymmetric effect, the moderating effect, and the mediating effect in the hydrogen development-EE nexus. Several findings are highlighted as follows: (1) Hydrogen development can significantly increase EE. (2) The marginal impact of hydrogen development on EE is significantly positive in countries with a high level of EE, while it is insignificant in countries with a low level of EE, which shows the asymmetric EE enhancement effect of hydrogen development. (3) Foreign direct investment is a key moderating variable in the nexus between hydrogen development and EE, which can strengthen this positive nexus. And (4) mediating effect analysis documents that technological progress is an effective mediating variable through which hydrogen development affects EE. According to these results, we propose several policy implications for the acceleration of hydrogen development and EE.

The Role of Environmental Regulations, Renewable Energy, and Energy Efficiency in Finding the Path to Green Economic Growth

European Union (EU) countries pay meticulous attention to environmental issues and achieve carbon-free development. In this direction, reducing greenhouse gas emissions and extending renewable energy are the primary goals. At the same time, the energy price and declining energy efficiency increase countries’ environmental expenditures and hinder their capabilities for economic growth. Against this backdrop, this research aims to examine the influence of environmental regulations, renewable energy, and energy efficiency on green economic growth. The originality of the study is twofold: first, it evaluates the green economic growth of a country, which simultaneously reveals the options for economic growth and the capability to eliminate its negative effect on the environment by applying the Global Malmquist–Luenberger productivity index; second, it develops an econometric model based on panel data for EU countries for 2000–2020 to investigate the nonlinear impact of environmental regulations, the effect of extending renewable energies, and the growth of energy efficiency on a country’s green economic growth. The study applies the following methodology: a system generalized method of moments (GMM) analysis. The empirical results confirm the U-shape, nonlinear impact of environmental regulations on a country’s green economic growth along with a gradual increase in energy efficiency. In addition, the findings indicate that renewable energy is crucial for furthering a country’s green economic growth. At the same time, environmental regulation has a significant role in extending renewable energy. The study results could be used as the basis for implementing green economic growth for EU countries and improving the policy of carbon-free development of these countries.

Eco-efficiency considering NetZero and data envelopment analysis: a critical literature review

Abstract We highlight the state of the art in the eco-efficiency measurement using data envelopment analysis, including Malmquist–Luenberger productivity index. We also consider productivity change over time, provide directions for future studies in the field and gather the most recent policy suggestions for governments, organizations and sectors for reducing CO2 emissions. A structured literature search of the Web of Science academic database reveals 311 papers published between 1989 and 2022. We carry out network analysis of citations to show the evolution of the literature in this research topic. In doing so, we (a) examine the key-route main path of knowledge flows, (b) provide basic bibliometric information about the most active journals and authors, (c) conduct a qualitative in-depth analysis of the identified most important studies and (d) identify the research fronts and relate them to the emerging issues on the topic researched, focusing on the most recent period between 2000 and 2022. Based on the insights of the literature review, the second part of this paper critically analyses the papers on the key-route (main path) of this subject. This review can be used as guidance and a starting point for researchers and practitioners who want to further investigate optimal policies to reach NetZero.

Are Economic Growth Pressures Inhibiting Green Total Factor Productivity Growth?

The purpose of this study is to reveal the impact of economic-growth pressure on green total factor productivity (GTFP) to provide a reference for promoting green development in China. Based on the economic-growth objective-management perspective, this paper takes panel data of 249 cities in China from 2006 to 2019 as a sample, using the directional distance function and the Malmquist–Luenberger Productivity Index to measure GTFP, and then using the dual fixed-effect model to empirically analyze the impact and intrinsic mechanism of economic-growth pressure on GTFP. The results show that (1) economic-growth pressure significantly inhibits GTFP and has a significant inhibitory effect on both green-technology progress and green-technology efficiency. However, the marginal negative effect on green-technology progress is stronger. (2) The inhibition effect of economic-growth pressure on GTFP is characterized by heterogeneity of economic-growth-pressure intensity, economic-development degree, and marketization level. The greater the economic-growth-pressure intensity, the higher the economic-development degree, the lower the marketization level, and the stronger the inhibition effect of economic-growth pressure on GTFP, green-technology progress, and green-technology efficiency. (3) The pressure of economic growth significantly inhibits patent innovation of green inventions and hinders the improvement of green technological innovation, leading to stagnation or retreat of green technological progress and the obstruction of GTFP improvement. The research conclusion of this paper has certain theoretical and practical significance. Based on the findings of the study, suggestions on promoting green development via economic-growth targets are given in three aspects: reforming the promotion-assessment system of officials, rationalizing the setting of economic-growth targets, and green-invention–patent-innovation-driven development.

Sustainable total factor productivity of transport: considering safety issues and environmental impacts.

Economy, environment, and safety are three important components of sustainable transport. This paper proposes a productivity measurement standard that comprehensively considers economic growth, environmental impact, and safety issues, namely sustainable total factor productivity (STFP). We measure the growth rate of STFP in transport sector of OECD countries in terms of Malmquist-Luenberger productivity index by applying data envelopment analysis (DEA). It is found that the growth rate of total factor productivity in transport sector can be overestimated if safety is ignored. In addition, we discuss the influence of socio-economic factors on the measurement results, finding that there exists a threshold on the impact of environmental regulation intensity on the growth of STFP in transport. That is, STFP increases with environmental regulation intensity if it is smaller than 0.247, while STFP decreases if it is larger than 0.247.

Estimating environmental efficiency of the selected Asian countries: does convergence exist?

Environmental degradation has attained much attention from researchers and policymakers at national and global levels. The ever-increasing energy use in production methods is considered one of the fundamental reasons for environmental degradation. The concept of environmental efficiency in the wake of sustainable growth evolved in the last three decades. The present study has been designed to estimate environmental efficiency using the Malmquist-Luenberger productivity index (MLI) using annual data from 43 Asian countries from 1990 to 2019. The MLI is an established econometric approach to estimate cases where input variables are used to get output variables in desirable and undesirable forms. Labor, capital, and energy consumption are input variables, while carbon dioxide (CO2) emissions (undesirable variable) and gross domestic product (undesirable variable) are taken as output variables. The results suggested that, on average, environmental efficiency has decreased by 0.3% over the period in selected Asian countries. Cambodia, Turkey, and Nepal have the highest total factor productivity (TFP) output growth rate on average among 43 Asian countries. These countries are excellent examples of sustainable development that balances environmental protection and efficiency. On the other hand, Kuwait, Mongolia, and Yemen showed the least TFP growth. The study also employed unconditional and convergence tests where the countries' conditional convergence is based on foreign direct investment, population density, inflation, industrialization, and globalization. Some policy implications for Asian countries are also discussed at the end of the study.

Sustainable development efficiency and its influencing factors across BRICS and G7 countries: An empirical comparison

Sustainable development is the global overarching paradigm and essential for achieving economic, social, and environmental development. The primary goal of this study is to compare the efficiency of sustainable development and evaluate its influencing factors across the BRICS (Brazil, Russia, India, China, and South Africa) and G7 (Canada, France, Germany, Italy, Japan, the United Kingdom, and United States) countries by examining total factor productivity, efficiency change, and technological change. For this, we adopted the super-efficiency SBM-DEA model with undesirable output and Global Malmquist-Luenberger (GML) productivity index model to overcome inaccurate efficiency results while avoiding environmentally unwanted outputs and to resolve the shortcomings of the conventional Malmquist-Luenberger index. It is also necessary to explore relevant influencing factors on the environmental pollution thereby affects the sustainable development efficiency of the study countries, thus, this study employed STIRPAT approach. A panel data of BRICS and G7 countries from 2005 to 2015 is used. The findings reveal that sustainable total factor productivity (GML) in China (1.0165), the US (1.0150), and UK (1.0024) is on the rise. China is also one of the countries that experienced the highest positive efficiency change (GMLEC) (1.0147) and the US has the highest positive technical change (GMLTC) (1.0103). Contrarily, Russia experienced the highest decline in GMLTC (0.9316) as well as GML indexes (0.9337), whereas South Africa experienced the highest decline in GMLEC (0.9707). Additionally, GDP per capita (.0969) and population (.4178) have a positive influence on CO2 emissions in the BRICS countries, whereas in the G7 nations, GDP per capita (−.2180) and population (−.1249) have negative influences on CO2 emissions. The study also offers practical recommendations to address identified limitations and improve sustainable productivity and environmental efficiency. The inverse link between GDP and CO2 emissions might imply that the G7 nations have passed the turning point on an environmental Kuznets curve (EKC), but this finding does not support the EKC hypothesis in the BRICS nations.

The Effects of Urbanisation on Green Growth within Sustainable Development Goals

The Green Deal policy and Sustainable Development Goals require that the economic development of a country should be reoriented towards ‘green‘ economic development. Currently, the globalisation and intensification of production boosts urbanisation in many countries, which may stimulate economic growth and improve citizen well-being, but may also lead to excessive consumption of resources and negative environmental impacts. Against the backdrop of these challenges, it is expedient to estimate the effects of urbanisation on the green growth of a country and define the relevant changes and instruments for achieving green growth in a country in view of urbanisation. The research covers the EU countries and Ukraine (as an official candidate for European Union membership) in the period of 2005–2020. Applying the Global Malmquist–Luenberger productivity index (to estimate green economic growth); a fixed and random effects model, GMM modelling (to evaluate the impact of urbanisation on green economic growth), this study aimed to contribute to the theoretical framework of green economic growth by extending input and undesirable output parameters of a country’s productivity. The findings revealed that, in 2020, as compared to 2005, green economic growth went into a decline in all countries analysed, this decline stemmed from accelerated urbanisation. However, industrial structure and research and development appeared to be conducive to green economic growth, which justifies the idea that countries should focus on implementing structural reforms for the technological modernisation of infrastructure and industrial complexes to dispose of the shortcomings caused by urbanisation. To compensate for this negative impact, the findings of this research prompt a set of policy implications concerning dissemination of the green knowledge and technologies, green project implementation, reinforcement of incentive instruments and achievement of a synergistic balance of economic and ecological targets underlying the SDGs.