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This study investigated the impact of the Belt and Road Initiative (BRI) on reducing smog pollution in key provinces along the route. Utilizing data from 284 prefecture-level cities in China from 2007 to 2018, this study adopted a propensity score matching-difference-in-differences approach, and conducted a series of robustness checks. The results indicate that the BRI has overall reduced particulate matter with aerodynamic diameter less than 2.5 µm (PM2.5) levels in key provinces along the route, and robustness checks find consistent results. Dynamic effect tests reveal a significant reduction in the annual average PM2.5 levels in key provinces along the route after the BRI was implemented in 2014. Tests on underlying mechanism find that the BRI mainly reduced PM2.5 levels in key provinces along the route by promoting technological innovation and optimizing industrial structure. Furthermore, heterogeneity tests find that the BRI significantly reduced PM2.5 levels only in cities of key provinces along the Silk Road Economic Belt, with variations in significance due to regional differences, city administrative levels, and marketization. In addition, the BRI has enhanced green total factor productivity in key provinces along the route by reducing PM2.5 levels. This study enriches research on the economic consequences of the BRI in terms of environmental protection, and also provides empirical support for the construction of the green "Belt and Road." [ABSTRACT FROM AUTHOR]

Introduction: The rapid aging of the labor force has serious implications for socioeconomic development and poses challenges to food sustainability. Existing studies have focused on the impact of labor force aging on land productivity, but little attention has been paid to the comprehensive capacity of agricultural production, namely the total factor productivity of agriculture. Methods: We estimate the impact of labor force aging on total factor productivity in agriculture using data from 170,506 sample farm households from the National Fixed Point Survey data from 2003 to 2020. We estimate the results using a panel fixed effects approach and mitigate the endogeneity problem using an instrumental variables approach to ensure the robustness of the estimates. Results and discussion: The results show that labor force aging has an adverse effect on the agricultural total factor productivity of farm households and remains robust after addressing endogeneity and substituting explanatory variables. The aging effect shows significant heterogeneity across different food functional areas with different types of farm households. The negative impact of labor force aging on total factor productivity in agriculture is mainly concentrated in the main grain-production and grain-producing and marketingbalanced areas. We also find that the negative impact of labor force aging is more significant among large-scale farmers. The mechanism analysis finds that the aging of the labor force adversely affects the agricultural total factor productivity by inhibiting technological progress and reducing the efficiency of agricultural resource allocation. These insights, when considered in the light of global trends towards agricultural labor aging, suggest that policy interventions aimed at promoting technological adoption, enhancing resource allocation efficiency, and supporting the transitioning of older farmers may hold promise for maintaining food sustainability and addressing the challenges posed by an aging agricultural workforce in numerous developing nations. [ABSTRACT FROM AUTHOR]

• Robot adoption led to a 10 % increase in productivity within China's manufacturing firms. • The impact was more pronounced in the first two years following adoption. • The impact was likely to be greater for small-size firms. • Multi-functional robots had more pronounced effects than single-functional ones. • Industry-city robot exposure had positive spillover effects on non-adopting firms. This study investigates the effect of industrial robots on firm productivity in China. Employing propensity score matching (PSM) and staggered difference-in-difference (SDID) estimations, we find a statistically significant and positive casual effect of robot adoption on firm productivity at the 1 % significance level, leading to an approximate 10 % increase in total factor productivity (TFP) among manufacturing firms in China. The effect was most pronounced in the first two years following adoption but lost statistical significance from the third year onward. Additionally, we find that robot exposure, measured by both adoption rate and adoption intensity, had positive and statistically significant spillover effects on large-scale non-adopting firms within the same industry and city, leading to significant improvements in their TFP. Furthermore, the effect of robot adoption on firm productivity varied by robot type, firm size, and industry. Multi-functional robots (MFRs) exhibited a more substantial effect compared to singlefunctional robots (SFRs). The automotive, plastic/chemical, and metal industries had great productivity gains compared to other industries. These results withstand various rigorous robustness checks, reaffirming the validity and consistency of our findings. [ABSTRACT FROM AUTHOR]

It has become a new trend for the future development of Chinese agriculture to accelerate the transformation from increasing production to improving quality and realizing green growth. This paper uses the sequential DEA to measure the agricultural green total factor productivity (GTFP) of 306 Chinese cities from 1996 to 2017, then tests its convergence. The results show that the average growth rate of Chinese agricultural GTFP is 0.58%; the main driving force coming from technical progress. The convergence of agricultural GTFP has dual characteristics of stages and regions, and the significant σ convergence only exists in the central region during 1996–2003. There is significant β convergence at the national level, in the eastern and central regions, and neither convergence nor divergence in the western region. However, during 2004–2017, only the eastern region had β convergence. Finally, the conditional convergence speed is higher than the absolute convergence, and the eastern region is higher than the central. [ABSTRACT FROM AUTHOR]

Background: With Primary Health Care (PHC) being a cornerstone of accessible, affordable, and effective healthcare worldwide, its efficiency, especially in developing countries like China, is crucial for achieving Universal Health Coverage (UHC). This study evaluates the efficiency of PHC systems in a southwest China municipality post-healthcare reform, identifying factors influencing efficiency and proposing strategies for improvement. Methods: Utilising a 10-year provincial panel dataset, this study employs an enhanced Data Envelopment Analysis (DEA) model integrating Slack-Based Measure (SBM) and Directional Distance Function (DDF) with the Global Malmquist-Luenberger (GML) index for efficiency evaluation. Tobit regression analysis identifies efficiency determinants within the context of China's healthcare reforms, focusing on horizontal integration, fiscal spending, urbanisation rates, and workforce optimisation. Results: The study reveals a slight decline in PHC system efficiency across the municipality from 2009 to 2018. However, the highest-performing county achieved a 2.36% increase in Total Factor Productivity (TFP), demonstrating the potential of horizontal integration reforms and strategic fiscal investments in enhancing PHC efficiency. However, an increase in nurse density per 1,000 population negatively correlated with efficiency, indicating the need for a balanced approach to workforce expansion. Conclusions: Horizontal integration reforms, along with targeted fiscal inputs and urbanisation, are key to improving PHC efficiency in underdeveloped regions. The study underscores the importance of optimising workforce allocation and skillsets over mere expansion, providing valuable insights for policymakers aiming to strengthen PHC systems toward achieving UHC in China and similar contexts. [ABSTRACT FROM AUTHOR]

This study investigates the influence of digital financial inclusion on green total factor productivity of grain in China, using data from 30 provinces (excluding Tibet) from 2011 to 2020. Our findings reveal a dual role of digital finance: it significantly enhances green productivity of grain in central and eastern China but has a contrasting effect in the western regions. The research also uncovers a unique pattern where the benefits of digital finance in one area can negatively affect nearby regions. This research contributes significantly to the discourse on finance and agriculture, providing nuanced perspectives on the regional implications of digital financial inclusion for grain productivity, and thereby enriching the understanding of its role in agrarian economies. [ABSTRACT FROM AUTHOR]

The current severe carbon emissions situation in China increases the demand for a sound environmental governance system. Using provincial panel data from 2003 to 2017, this study investigates the spatial impact of different types of environmental decentralization (ED) on total factor carbon productivity (TFCP) and its internal mechanisms and explores the threshold effect of horizontal environmental decentralization (HED) and fiscal decentralization (FD) on this impact. The results indicate that the effect of ED on TFCP exists after considering the spatial dependence. An inverted "U-shaped" relationship exists between vertical environmental decentralization (VED) and TFCP, and a "U-shaped" relationship between horizontal environmental decentralization (HED) and TFCP; that is, excessive VED and insufficient HED will inhibit TFCP. Green technology innovation acts as a mediator in the impact of ED on TFCP, including VED and HED. The dynamic threshold panel model finds that both the increase of HED and FD improved the promotion effect of VED on TFCP, but the change in HED gradually reduced the promotion effect. China should adhere to the Goldilocks principle, strengthen vertical environmental centralization and promote horizontal environmental decentralization to create a superior institutional environment for stimulating green technological innovation to further weaken the "free rider" effect of environmental governance caused by externalities. [ABSTRACT FROM AUTHOR]

Why has the structural bonus been so small during China's post-reform era? This article explains the puzzle by exploiting the heterogeneity in structural-change patterns across Chinese provinces. Using an original database covering production and factor inputs in 8 sectors and 31 provinces over 1993–2016, I show only those provinces where labour was reallocated from agriculture to manufacturing and services benefited from a structural bonus on labour productivity growth. In the other provinces, this structural-change effect was minimal or negative. Regarding the structural-change effect on total factor productivity (TFP) growth, I find both labour and capital reallocation played a limited role. Labour reallocation has little potential in boosting aggregate TFP growth, as marginal labour returns are similar across sectors. Capital reallocation has a far greater potential but remains restrained, suggesting substantial reallocation frictions. China's TFP growth is mostly explained by within-sector technological progress, which has been dissipating since 2008, leading to declining TFP growth. [ABSTRACT FROM AUTHOR]

Nowadays, concurrent attention to economic development and ecological issues is becoming an important trend. In this paper, we measure the eco-efficiency of 285 Chinese cities from 2003 to 2019 using a non-radial directional distance function and the data envelopment analysis method, based on which we analyze the club convergence of cities' eco-efficiency using the logt test; we estimate the impact of open public data platforms on eco-efficiency and its convergence using a multi-period difference in difference model and panel-ordered logit model, respectively. We find that, first, open public data platforms improve cities' eco-efficiency by about 6.5%, and the impact mechanisms include scale efficiency, technical efficiency, and total factor productivity, or, at the micro level, increasing the economic agglomeration degree, boosting the amount of foreign investment used, and increasing green innovation level. Second, there are three convergence clubs of eco-efficiency in China's cities, whose average eco-efficiency trends are above, close to, and below average, respectively. Third, public data platforms significantly increase the probability of cities belonging to the convergence clubs of high and medium eco-efficiency (Clubs 1 and 2) and decrease the probability of belonging to the low one (Club 3). However, the mechanisms only include technical efficiency and total factor productivity, or the amount of foreign investment used and the green innovation level at the micro level. [ABSTRACT FROM AUTHOR]

By utilizing the center of gravity-standard deviation ellipse, kernel density estimation, and GeoDetector, this paper analyzes the spatial distribution pattern of China's agricultural green TFP and the dynamic evolution law of its distribution in different regions based on the provincial-level related input-output data of China's agriculture from 2001 to 2020. It also investigates the factors that affect its spatial differentiation. We find that (1) China's agricultural green TFP, which has a long-term upward trend and an average annual growth rate of 3.21% between 2001 and 2020, is mostly fueled by technological advancements in the field of agriculture. (2) Agricultural green TFP tends to move eastnorthward, and its spatial distribution is gradually expanding, showing a northeast-southwest pattern. (3) Agricultural green TFP in the country as a whole and the three major food regions has increased over the study period, with absolute differences within the country gradually narrowing, and cities with higher agricultural green TFP within the regions approaching the average, and the polarization phenomenon easing. (4) The main determinants of the spatial divergence of green TFP in agriculture are the replanting index, agricultural output per capita, and the degree of financial support for agriculture. The strength of the interactions between the various factors is significantly greater than the explanatory power of any one factor. [ABSTRACT FROM AUTHOR]

Research examining the economic effects of urban polycentricity remains inconclusive. We contribute to this debate by developing a longitudinal framework in which changes in polycentricity in Chinese urban regions are linked with changes in total factor productivity. While we find no evidence of urban polycentricity being conducive to economic growth, we observe that the relationship depends on population size and the interactions between cities. We also find that cities borrow size from nearby cities in large urban regions, contributing to regional economic growth. We use our findings to reflect on China's regional economic and urban development strategies. [ABSTRACT FROM AUTHOR]

The development of renewable energy has become an important measure for countries worldwide to improve air quality, reduce greenhouse gas emissions, and achieve sustainable development. This trend may have implications for green total factor productivity (GTFP), which represents the economic growth efficiency in terms of resource and energy use. However, the current research on the impact of renewable energy development (RED) on GTFP based on China's provincial data is still insufficient, and it has not yet integrated multiple factors such as economic, social, environmental, and technological aspects to jointly analyze potential nonlinear effects. This paper first calculates the GTFP of 30 provinces in China using a global super-efficiency slack-based measure model. Then, a two-way fixed effects model and a panel threshold regression (PTR) model were used to explore the linear and nonlinear effects of RED on GTFP. The results show that: First, RED has a significant positive effect on GTFP, which remains in effect after a sequence of robustness tests including endogenous treatment. For every 1% increase in RED, GTFP increases by 0.025%–0.039%. Second, the contribution of RED to GTFP shows a clear characteristic of diminishing marginal benefits, with the impact coefficient decreasing from 0.058% to 0.022%. Third, the higher the level of economic activity, social conditions, environmental protection, and technological advancement, the greater the favorable impact of RED on GTFP. The range of coefficient changes under the influence of economic- and social-level factors reaches 0.012%–0.143%, while the range of coefficient changes at the technological and environmental levels is only 0.026%–0.057%. Based on the above conclusions, some policy implications related to the development of renewable energy are proposed. [ABSTRACT FROM AUTHOR]

We compare the economic and environmental performances of India and China over the past decade against the Euro Area, Japan, and the USA. India has emerged as the world’s fastest growing large economy, but closer scrutiny suggests this impressive economic performance derives largely from structural factors such as labor force growth and the Balassa-Samuelson effect. Indeed, notwithstanding its superior level of economic development relative to India, China still posts stronger economic gains from investment and total factor productivity growth. While the two economies have grown markedly faster than the three developed economies against which we compare them, both Indian and Chinese growth has come with huge increases in greenhouse gas emissions. Our findings underscore the importance of Chinese and Indian participation in efforts to avoid the more dire impacts of climate change. [ABSTRACT FROM AUTHOR]

This study investigates the impact of China's Digital Economic Policy (DEP) on industries' green innovation. It contributes to the existing literature on technology policy evaluation by challenging the assumption that this impact is similar across different industries. To achieve this, a conceptual framework is proposed, highlighting the asymmetric influence of the DEP on green innovation. By analysing panel data from 35 Chinese industrial subsectors, including 15 heavily polluting industries (HPIs) and 20 non-HPIs, between 2010 and 2020, this study reveals that the implementation of the DEP results in significantly higher levels of green innovation of HPIs as opposed to non-HPIs. The DEP's positive impact on green innovation of HPIs is primarily facilitated through industrial structure upgrading. Moreover, this study finds that the DEP has a greater effect on green innovation of HPIs with a lower state-owned ratio, higher total factor productivity or higher capital dependence. [ABSTRACT FROM AUTHOR]

This editorial discusses the dynamics and prospects of the energy market and energy transition. It emphasizes the global shift towards renewable energy due to government initiatives and technological advancements. However, challenges to the transition process exist, such as the impact of the COVID-19 pandemic on global energy demand and fossil fuel prices. The editorial highlights the varying dynamics of the energy market and transition process at the national and firm levels. The collection of research papers covers topics such as renewable energy subsidies in China, efficiency of hydropower electricity generation, and the impact of oil prices on consumer and producer prices. It also explores behavioral economics and the role of natural gas in achieving urban ecological civilization. The editorial acknowledges the contributions of the authors, reviewers, and journal editors in making this collection possible. [Extracted from the article]

Introduction: The construction of digital villages is widely acknowledged as a way to achieve the "dual goals" of high quality of the agricultural and rural economy and common prosperity under the digital China strategy. Studies have explored the socio-economic benefits of different aspects of rural digitization, but few have focused on the productivity role of rural broadband development in the context of the urban-rural broadband divide. The purpose of this paper is to explore the relationship between rural broadband development and agricultural total factor productivity (TFP) and the intrinsic mechanism of action, and to provide empirical evidence on the productivity effect of promoting digital transformation in rural agriculture. Methods: Using panel data from 31 provinces in China from 2011 to 2020, this paper investigates the impact and mechanism of rural broadband development on agricultural TFP from the perspective of agriculture-related loans by setting up a two-way fixed effects model, a mechanism effects model and a threshold effects model. Results: The results find that rural broadband development has a significant role in enhancing agricultural TFP. Heterogeneity analysis indicates that the productivity-enhancing effect of rural broadband development is remarkable only in the central region and the region with higher rural disposable income. Mechanism analysis points out that rural broadband development can increase agricultural TFP by influencing the share of farm-related loans. Threshold analysis further reveals that the role of increasing the share of farm-related loans on agricultural TFP is marked only after rural broadband development reaches a certain level. Discussion: These findings can provide practical guidance for other developing countries in accelerating the digital transformation of villages and optimizing factor allocation to achieve high-quality agricultural development. [ABSTRACT FROM AUTHOR]

Misallocation of factors of production has been recently viewed as a promising explanation accounting for the large difference in total factor productivity (TFP) across countries. This article differs from previous studies by concentrating on interregional capital misallocation and by focusing on the role of fiscal decentralization in shaping misallocation. Using a city level panel data set, we measure intra-provincial and inter-city capital misallocation in China over 2003–2018. The empirical results based on provincial level panel data suggest that fiscal decentralization can lower inter-city capital misallocation while revenue decentralization performs better than expenditure decentralization. We further find that this positive effect is more significant and much larger when it is the market rather than government intervention that is driving the flow of capital. The results are robust to subsample regressions, IV estimations, spatial autoregressions and alternative measurement of interregional misallocation. [ABSTRACT FROM AUTHOR]

Improving energy efficiency is vital for addressing climate change and reducing carbon emissions in emerging economies. Financial development (FD) is crucial for economic growth, and its environmental impact and the adjustment of the industrial structure (IND) is a crucial lever in China's economic transition period. This study explored the relationship between FD, IND, and China's green total factor productivity (GTFEE) from 2000 to 2020 using the super-efficiency SBM-undesirable model, which estimates China's GTFEE. The ARDL results suggest that FD and IND enhance GTFEE in the long term, with FD promoting GTFEE by facilitating industrial structure adjustments. The Dumitrescu–Hurlin panel causality tests supported this finding. The QRPD panel quantile regression and heterogeneity analysis revealed significant heterogeneity in the effects. With increasing GTFEE, FD exerts a restraining effect, gradually weakening and transitioning into a promoting effect, while the IND consistently plays a promoting role. [ABSTRACT FROM AUTHOR]

We study the causes and consequences of land misallocation based on matched Chinese firm-level data and land transaction data during 1998–2016. We employ a land misallocation index and identify significant land misallocation in China. We find that price distortion and political incentives are associated with land misallocation. Land misallocation has important implications for economic performance. We quantify the relationship between land misallocation and productivity and find that a one standard deviation decrease in land misallocation is associated with a 14.51% decrease in labour productivity and a 10.76% reduction in total factor productivity. [ABSTRACT FROM AUTHOR]

By matching the geocoded data of firm-level productivity and county-level expressway networks in China's Yangtze River Delta region, we establish a difference-in-differences model to investigate the impact of expressways on manufacturing firm productivity. The results show that expressways boost manufacturing firms' total factor productivity, with firms closer to expressway services achieving more significant productivity increases compared to those farther away. The results remain robust after controlling for the endogeneity problem using an instrumental variable approach. Expressways promote firm productivity by reducing inventory costs and increasing firm profitability and regional industrial concentration, whereas their effect on product innovation is insignificant. We also find heterogeneity in the impact of expressways on firm productivity, with firms in peripheral counties and in labor-intensive industries receiving a weak productivity-enhancing effect, while firms in central regions and those with high transport dependency benefit more. [ABSTRACT FROM AUTHOR]

This paper examines the impact of extreme precipitation on Chinese industrial output and its total factor productivity (TFP) using data from the annual survey of industrial firms (ASIF) and daily weather data. The findings demonstrate a significant reduction in industrial firm output as a result of precipitation, with extreme daily precipitation decreasing output by approximately 1.22%. We provide an explanation for this precipitation-industrial output relationship from four perspectives: per capita wages, labor productivity, inventory, and depreciation. The effects of extreme precipitation are more pronounced in high-income and high-precipitation regions, as well as among foreign firms and low-technology firms. Our research suggests that extreme daily precipitation poses a serious obstacle to the development of the manufacturing industry. These results are crucial for understanding the economic impact and concealed costs of climate change, highlighting that extreme precipitation should be recognized as one of the primary sources of damage associated with climate change in the future. [ABSTRACT FROM AUTHOR]

The openness and security of a country's borders is a matter of concern for countries worldwide. Since its reform and opening up in 1978, China has implemented reforming and opening policies in border regions, as represented by the "Xingbian Fumin Xingdong" (Revitalize Border Areas and Enrich Residents' Lives Policy [RBAERL Policy]) to achieve economic prosperity and stability. This study evaluated the impacts of the RBAERL policy in terms of outcomes related to county‐level economic growth in China's border regions. Using China's county‐level panel data from 1999 to 2016, we applied a spatial discontinuity design with the geographical boundary serving as the running variable. We found that the RBAERL policy contributed significantly to the economic growth of the border counties. These results were shown to be robust when measured against a series of test procedures. Through a by‐segment analysis of the border regions, we found that the policy had the strongest effect in northeastern China. Further mechanism analysis showed that the effect of per capita GDP growth primarily resulted from the expansion of the industrial sector along with physical and human capital investment rather than the promotion of employment and the growth of total factor productivity. The findings of this study can provide references for the importance of open borders for economic development and national security. [ABSTRACT FROM AUTHOR]

This study investigates the influence of ecological innovations and sustainable financing in promoting the Chinese economy's green total factor productivity (GTFP) from Q1-2004 to Q4-2018. Initially, this study measures GTFP using Data Envelopment Analysis and applies Bootstrap Auto-regressive Distributed Lagged (BARDL) model for dynamic effects. The preliminary results confirm the existence of unit root and a long-term cointegrating relationship among the model variables. The long-run results demonstrate that ecological innovations and sustainable financing have promoted GTFP in China. Moreover, government intervention is imperative to support green productivity growth at the macro level. However, there is a need to control the adverse effect of unemployment in impeding GTFP. Notably, the long-run results reflect the more substantial impact of the stated variables compared to the short run with the convergence towards long-run equilibrium. The policymakers are suggested to prioritise the development of the financial market and technological innovations. [ABSTRACT FROM AUTHOR]

Under the constraints of the "dual-carbon" objectives, how China can sustain economic development while concurrently achieving carbon emission reduction has become a pressing issue. With the rapid expansion of China's outward foreign direct investment (OFDI), elucidating its impact on carbon emission efficiency (CEE) assumes pronounced significance. Employing the systematic generalized method of moments (GMM) approach, based on panel data spanning the years 2006 to 2019 for China, this study primarily delves into the influence of OFDI on China's CEE. Furthermore, it probes into the mechanisms and asymmetries underpinning the relationship between OFDI and CEE. The principal findings are as follows: (1) augmentation of OFDI exerts a constructive effect on domestic carbon emission reduction, concomitantly yielding a discernible enhancement in CEE. A 1% increase in the magnitude of OFDI flow gives rise to a 0.009% improvement in CEE. (2) Mechanism verification reveals that heightened levels of OFDI operate through elevating green total factor productivity (GTFP), fostering optimal industrial structural adjustments, and invigorating green technological innovation, thereby elevating the CEE of the home country. (3) Asymmetry characterizes the impact of OFDI on domestic CEE, signifying a significant enhancement in regions with lower CEE while exhibiting less conspicuous effects in areas with higher CEE. This study furnishes policymakers with insights into leveraging OFDI to enhance CEE, thereby facilitating the attainment of the "dual-carbon" objectives. [ABSTRACT FROM AUTHOR]

This paper evaluates the causal effects of climate change on firm productivity from the perspective of drought, which is a complicated climate phenomenon. Based on the panel data of agriculture-related firms in China, we present strong evidence that drought significantly reduces firm' total factor productivity. Mechanism analysis shows that the negative effect is rooting from higher costs of equity capital, higher operation costs, and lower investment efficiency. Finally, we find that government subsidy and policy stimulating corporate innovation can help firms adapt to climate change. [ABSTRACT FROM AUTHOR]

The promotion of innovation by the market transaction mechanism is affected by the perfection of the market system, the support of government policies, and companies' operational strategies. However, few empirical studies explore this subject. In this context, we investigated how China's carbon emission trading (CET) policy promotes companies' total factor productivity (TFP) from the perspective of operational strategies, technological innovation, and market environment. Using the micro-data of listed companies from the Chinese stock "A" markets, we employed the difference-in-differences method to identify the CET policy's effect on companies' TFP. The benchmark regression results reveal that the policy has significantly boosted companies' TFP. Furthermore, the mechanism analysis shows that companies could enhance their TFP by promoting technological innovation instead of operational strategies. Meanwhile, the government can facilitate this improvement effect by optimizing the market environment. Moreover, the heterogeneity analysis of market failure demonstrated that it would affect the performance of the CET mechanism. Additionally, the CET scheme's effect on companies' TFP is heterogeneous in terms of industry, ownership, and region. The results suggest that the Chinese government should continue to improve the market and institutional systems, increase R&D technology subsidies for innovation activities, and enhance the level of financial development. [ABSTRACT FROM AUTHOR]

Amidst resource loss and environmental protection constraints, achieving green development necessitates enhancing green total factor productivity (GTFP) as a means of promoting rational and efficient resource allocation, thereby balancing economic growth and environmental preservation. Meanwhile, literature on the subject matter of GTFP from a sustainability viewpoint is minimal. As a result, this study employs the panel dataset from 30 provinces of China spanning the period 2005 to 2020 and utilizes the method of moments quantile regression (MMQR) developed by Machado and Santos Silva (2019) to analyze the heterogeneous role of green innovation, environmental regulations, and fiscal expenditure on GTFP. Moreover, the controlling variable for this study includes renewable energy and economic growth. Furthermore, this study investigates the heterogeneous combined impact of green innovation and fiscal expenditure (GTE*FSE) on GTFP. The findings of the MMQR reveal that green innovation has a positive impact on GTFP, while fiscal expenditure, environmental regulations, and renewable energy consumption have a negative impact. GTE*FSE has a positive and significant effect on GTFP, indicating that FSE can reinforce and increase the positive impact of GTE on GTFP in the long run. The study also reveals that economic growth has a mixed effect on GTFP, depending on the quantiles. Furthermore, environmental regulation has a significant and negative impact on GTFP, contradicting the Porter hypothesis. Likewise, the robustness of the findings is confirmed by the results of the fully modified OLS (FMOLS) and dynamic OLS (DOLS) estimations, which indicate a similar impact of the determinants on GTFP as observed in the MMQR analysis. This reinforces the validity of the findings and suggests that the observed relationships are robust to different estimation techniques. Furthermore, the findings of the Dumitrescu and Hurlin (D-H) panel causality test reveal significant bidirectional causality between renewable energy consumption and GTFP and fiscal expenditure and GTFP. Policy-makers need to channel a large chuck of their fiscal spending into green innovation so as to boost sustainability. [ABSTRACT FROM AUTHOR]

Green finance development is critical for balancing economic growth and environmental conservation. Global economies implement rigorous environmental rules to limit climate change, stimulating the shift to renewable energy by promoting green investment due to more excellent perception and mounting demands from concerned parties—using 27,042 observations from China's Shanghai and Shenzhen stock exchanges for A-share listed businesses. On data from 1990 to 2019, this research uses a cross-section augmented autoregressive distributed lag (ARDL) framework. The findings show that enforcing strict environmental standards is one of the most effective strategies for Chinese companies to reduce carbon emissions using green financing. Furthermore, renewable energy has a negative correlation with carbon emissions. Our research reveals that renewable energy regulations increase energy businesses' total factor productivity and that the impact of policy implementation lasts for some time. Our results hold up to a variety of green finance promotion approaches. According to further research, the boosting effect of renewable energy policy implementation may be eclipsed by its impact on the allocation of resources efficiency and technical innovation. Furthermore, the influence of renewable energy legislation on total factor productivity varies due to changes in company type, external environment, and geographical position. Renewable energy initiatives, for example, tend to reduce total factor productivity in state-owned businesses, large-scale businesses, and businesses with a high ownership concentration. • Strict environmental standards and green financing reduce carbon emissions. • Renewable energy policies increase energy businesses' productivity. • Green finance development accelerates the transition to renewable energy. [ABSTRACT FROM AUTHOR]

This study investigates how provincial top leaders' promotion incentives drive their strategies for eco-environmental performance in China. Economic growth, a short-term interest, should be integrated with ecological sustainability, a long-term interest, for sustainable development. We used green efficiency and green total factor productivity as proxies for eco-environmental performance. We then utilized a generalized ordered logit model to analyze the relationship between eco-environmental performance and position change among provincial officials in China. For provincial party committee secretaries, the short-term political performance achieved by supporting and investing in non-green economic practices served only to prevent their demotion, as promotions were obtained via improving green efficiency; however, for provincial governors, improving green efficiency can both reduce the risk of demotion and increase the probability of promotion. After the implementation of the new Environmental Protection Law in 2015, improving green total factor productivity can more efficiently reduce the likelihood of demotion among provincial party committee secretaries while enhancing the effects of eco-environmental performance on position change among provincial party committee secretaries. Our study improves the single-oriented, super-efficiency data envelopment analysis model to optimize the process of solving both input- and output-oriented problems simultaneously and realizes efficiency ranking for eco-environmental performance among provincial officials. Furthermore, this finding deepens our understanding of both the promotion system for Chinese local leaders and motivations for eco-environmental performance. [ABSTRACT FROM AUTHOR]

In the light of China's synergistic need to achieve Sustainable Development Goals (SDG) 10 and 13, it is necessary to consider the potential nexus between common prosperity and carbon reduction. Therefore, this work proposes a new comprehensive measure to assess the degree of common prosperity in 30 Chinese provinces from 2006 to 2019. Furthermore, we examine the impact of common prosperity on carbon emissions applying the system-generalized method of moments (SYS-GMM) approach. All major conclusions are as follows: (1) the level of common prosperity has continued to increase between 2006 and 2019; (2) common prosperity and carbon reduction are compatible with each other, i.e., common prosperity significantly reduces carbon emissions; (3) common prosperity reduces carbon emissions indirectly by improving labor productivity and upgrading industrial structure; (4) carbon emissions are indirectly increased by common prosperity through the expansion of gross fixed capital formation and higher levels of urbanization, and (5) in provinces with higher levels of common prosperity and lower levels of carbon emissions, common prosperity has a considerably greater influence on carbon emissions. Finally, we suggest several policy implications for promoting China's sustainable development. [ABSTRACT FROM AUTHOR]

This paper examines the impact of structural distortions on resource allocation among industries, regions (provinces), and ownerships in China, using data from 2003 to 2019. This paper innovatively develops an empirical model to measure multi-dimensional structural distortions and assesses the resource misallocation degrees regarding industries, regions, and ownerships. The results indicate that China's most serious resource misallocation is related to industries, followed by regions and ownerships, and the most severe capital misallocation is associated with ownership, and labor misallocation exists in industries. The present study contributes to the literature by creating an innovative two-layer empirical model to address the limitations of Hsieh and Klenow's model. The findings have identified which group (industry, region, and ownership) is excessive or insufficient in resource usage, and the results have profound policy and practical implications. [ABSTRACT FROM AUTHOR]

Based on provincial-level agricultural input and output data in China from 2000 to 2019, this study estimates the Luenberger-Hicks-Moorsteen index using the nonparametric method of the directional distance function to obtain agricultural green total factor productivity (AGTFP). The results show that AGTFP in China has increased significantly over the past 20 years, with significant differences between provinces and among the eastern, central, and western regions. Land market distortion has had a significant negative impact on AGTFP. The results suggest that the government needs to promote the market-oriented reform of land factors, solve the price distortion caused by land finance, promote the intensification and modernization of agricultural management, and realize the potential of green agricultural production. [ABSTRACT FROM AUTHOR]

The synergy of the digital economy and green total factor productivity (TFP) is the foundation for achieving beneficial outcomes for both the economy and environment. This synergy is also the catalyst for high-quality development and sustainable economic growth in China. The study applied a modified Ellison-Glaeser (EG) index, super-efficiency slacks-based measure (SBM) with a Malmquist-Luenberger (ML) index, coupling coordination degree, and other models to explore the spatiotemporal heterogeneity of the coupling between the digital economy and green TFP from 2011 to 2020 and also analyzed the influencing factors of the coupling. The results show that the coupling between the digital economy and green TFP showed an overall upward trend from imbalance to synergy during the study period. The distribution of the synergistic coupling expanded from point-like to band-like, and there was a significant spreading pattern from the east to the center or west China. The number of cities in a transition state decreased significantly. Spatial jumps, a coupling linkage effect, and evolution in time were prominent. Additionally, the absolute difference among cities expanded. Although coupling in the west experienced the fastest growth rate, the coupling in the east and resource-based cities showed significant benefits. Coupling did not reach an ideal coordinated state, and a neutral interaction pattern remains to be formed. Industrial collaboration, industrial upgrading, government support, economic foundation, and spatial quality all positively impacted the coupling; technological innovation had a lagged effect; and environmental regulation has not reached its full potential. Further, the positive effects of government support and spatial quality performed better in the east and in non-resource-based cities. Due to the optimization of industrial structure, the coupling of the west and resource-based cities achieved better dividends; however, spatial quality needs further improvement. Therefore, the efficient coordination of China's digital economy and green TFP requires a scientific, reasonable, localized, and distinctive approach. [ABSTRACT FROM AUTHOR]

This study investigates how the revenue pressure of local governments affects firm total factor productivity (TFP). To establish causality, we exploit a policy shock in China, that is, the cancellation of agricultural tax in 2005. Specifically, we document that governments suffering from sudden tax reduction substantially increase local firms' productivity in the subsequent periods. Furthermore, we use the difference‐in‐differences‐in‐differences approach to explore the potential channels through which the local fiscal squeeze improves firm productivity. Local firms increase capital and employment and adopt a higher capital‐to‐labour substitution for a higher TFP in response to the local governments' fiscal squeeze. We find that the effects of revenue pressure incentives on productivity are prominent in firms with low resource misallocation and high labour quality. Our finding suggests that local governments could improve firm productivity in response to fiscal revenue pressure by enhancing resource allocation efficiency and labour quality. [ABSTRACT FROM AUTHOR]

Employing a quasi‐natural event, that is, gangdom and evil forces (GEs) elimination in China, we examine how public governance proxied by GEs elimination affects firm total factor productivity (TFP) using data on Chinese‐listed firms between 2009 and 2020. Our findings show that GEs elimination significantly reduces firm TFP through two complementary channels: increase in environmental uncertainty and the weakening of the protective umbrella. We also reveal that the effects of GEs elimination on firm TFP are more prominent in SOEs and in firms exposed to weaker media attention. Our main results pass a series of robustness and endogeneity checks. We provide clear policy implications to regulators by identifying firm‐level evidence. [ABSTRACT FROM AUTHOR]

This paper proposes a latent variable approach to examine the induced innovation hypothesis originating from Hicks (The theory of wages, Macmillan, London, 1932). It allows a flexible decomposition of total factor productivity into Type I (exogenous) and Type II (induced) technical changes using a latent variable d as an argument in a variable cost function. By making extensive use of duality theory, we are able to estimate the Hicksian input demand functions, which are explicit in d but may lack a closed-form representation in terms of observable variables such as input prices and output level. The "unobservability" of d is solved by using a numerical inversion estimation method. We apply this methodology with an appropriate estimator to investigate the impact of induced innovation on China's total factor productivity growth. Our findings indicate that the induced innovation hypothesis is strongly supported by the data and that induced innovation has a positive and profound effect on China's productivity growth. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to examine the spatial fluctuation spillover effect of green total factor productivity (GTFP) under the influence of Internet development. Design/methodology/approach: Using panel data from 283 cities in China for the period 2003–2016, this paper explores the spatial fluctuation spillover effect of internet development on GTFP by applying the spatial autoregressive with autoregressive conditional heteroscedasticity model (SARspARCH). Findings: The results of Moran's I test of the residual term and the Bayesian information criterion (BIC) value indicate that the GTFP has a spatial fluctuation spillover effect, and the estimated results of the SARspARCH model are more accurate than the spatial autoregressive (SAR) model and the spatial autoregressive conditional heteroscedasticity (spARCH) model. Specifically, the internet development had a positive spatial fluctuation spillover effect on GTFP in 2003, 2011, 2012 and 2014, and the volatility spillover effect weakens the positive spillover effect of internet development on GTFP. Moreover, Internet development has a significant positive spatial fluctuation spillover effect on GTFP averagely in eastern China and internet-based cities. Research limitations/implications: The results of this study provide digital solutions for policymakers in improving the level of GTFP in China, with more emphasis on regional synergistic governance to ensure growth. Originality/value: This paper expands the research ideas for spatial econometric models and provides a more valuable reference for China to achieve green development. [ABSTRACT FROM AUTHOR]

Strengthening environmental governance and green low-carbon policies is a key measure to improve agriculture green total factor productivity and develop sustainable agriculture. Against this background, this study explores the relationship between agriculture green total factor productivity (AGTFP), environmental governance, and green low carbon policies based on panel data of 30 Chinese provinces from 2005 to 2019, and the system generalized method of moments model is adopted. The empirical results are as follows: (1) Environmental governance will not only directly affect AGTFP, but also indirectly affect AGTFP by influencing green technology innovation. (2) Environmental governance can strengthen the promotion of green low-carbon policies to AGTFP. (3) There are regional differences in causality among AGTFP, environmental governance, and green low-carbon policies. These empirical results offer Chinese policymakers scientific and normative recommendations for improving AGTFP and developing sustainable green agriculture. [ABSTRACT FROM AUTHOR]

Green innovation is an important way to realize the "double carbon" target, but financial support is necessary and important. This paper uses the multi-period difference-in-difference method to estimate the impact of city commercial banks on city green innovation. The data sample is the panel data of 285 prefecture-level cities in China from 2003 to 2019. Based on the empirical results, it can be concluded that city commercial banks can significantly promote green innovation, but have no significant contribution to the unbiased technological progress expressed by total factor productivity, i.e., overall innovation, while indicating that they are more efficient in promoting green innovation than overall innovation. This finding is still valid after a series of robustness, placebo, and parallel trend tests. After considering the moderating effect of environmental regulations, we find that market-incentive environmental regulation has a significant moderating effect on green innovation promotion, whereas command-control environmental regulation does not. On this basis, we propose policy recommendations to promote the development of city commercial banks; strengthen green innovation in central and western China, be both rigid and flexible in their approach to environmental regulation; and improve legal regulations. [ABSTRACT FROM AUTHOR]

Under the background of the deep convergence of China's digital services and manufacturing, it is of great significance to investigate the effects of the convergence of digital services and manufacturing on economic growth and carbon emissions reduction to the application of digital technology in the whole world. This paper constructs a simultaneous equation model and uses three-stage least squares to estimate the effect and mechanism of industrial convergence on economic growth and carbon emissions. The results show that (i) industrial convergence improves the change of total factor productivity (TFP) and the change of technical efficiency, and the reduction of carbon emissions is the main factor driving the growth of TFP and technical efficiency; (ii) industrial convergence and carbon emissions show a significant U-shaped relationship; (iii) the heterogeneity analysis shows that the convergence of capital-intensive, technology-intensive and labor-intensive manufacturing with digital services will help to improve the growth of TFP, it can inhibit carbon emissions first and then promote it. Therefore, the government should take targeted measures to promote industrial convergence of digital services and manufacturing according to the economic development and industry characteristics, so as to give full play to its positive role in economic growth and emissions reduction. [ABSTRACT FROM AUTHOR]

In China, exploring the relationship between human capital and green economy in the context of economic transformation can promote the construction of an ecological civilization and high-quality economic development. This paper is dedicated to assessing the impact of human capital stock, human capital structure, and the difference between the two on China's green economy. Using the super-efficiency slack-based measure (SBM) model, this paper evaluated the green total factor productivity (GTFP) of 30 Chinese provinces to assess the greenness of its economy and analyzed its spatiotemporal evolution from 2000 to 2017. A spatial error model (SEM) was established to explore the impact of human capital on green economy. The results show that (1) the GTFP of China increased continuously from 0.219 to 0.457, showing a regional spatial differentiation of "eastern region > central region > western region." The spatial gaps of the green economy in the east-west and north-south directions are narrowing. (2) Moran's I index and Moran's I scatter plot indicate a significant spatial correlation between human capital and China's green economy. The local spatial correlation between human capital and green economy is mainly characterized by "high-high" and "low-low" types of agglomeration. (3) The effects of human capital stock and human capital structure on green economy were both positive, with coefficients of 0.0005 and 0.1601, respectively, but the effects of human capital structure were not significant. (4) The results of regional regression show that the difference between the human capital impact coefficients on green economy in the eastern and midwestern regions is small. The impact of human capital stock and human capital structure on green economy is consistent with the national level results. It can be preliminarily concluded that the development of China's green economy relied more on improving the human capital stock than on the improvement of the human capital structure. This study further enriches the literature on the green economy and provides information that can support government policy-making. [ABSTRACT FROM AUTHOR]

To estimate the short term effect of environmental regulation on firm exports, this study considers China's 2003 City Air Pollution Prevention and Control Program (CAPPCP) in a quasi-natural experiment with microdata from 2000–2007. Using the difference-in-differences (DID) and matching DID methods, our findings indicate that CAPPCP reduced firm exports by 6.2% and 12.3%, respectively. A mechanism analysis examines the three channels through which CAPPCP affects firm exports: total factor productivity, production costs, and factor endowments. Furthermore, a heterogeneity analysis reveals that non-state-owned firms, small-scale firms, and firms in highly polluting industries have stronger negative responses to environmental regulations. [ABSTRACT FROM AUTHOR]

This study investigates the effect of tax enforcement on corporate social responsibility (CSR) performance. By using the Third Phase of China's Golden Tax Project as an exogenous shock to conduct a difference–in–differences estimation, we find that tax enforcement has a sizable positive effect on CSR performance, which is mainly achieved through improving the performance of corporations in fulfilling their responsibilities to their employees, suppliers, customer and consumer rights, and the environment. Our findings are robust to different specifications and endogeneity problems. One possible mechanism driving our results is that tax enforcement reduces corporate tax evasion, which further promotes CSR performance. Our results are particularly significant for firms in highly competitive industries or firms with high levels of business risk. Furthermore, the improved CSR performance influenced by tax enforcement ultimately increases the total factor productivity, market value, and shareholder returns of firms. [ABSTRACT FROM AUTHOR]

This study analyses changes in total factor productivity (TFP) of grains as an aggregate commodity and major grain crops including rice, wheat, and corn, using pooled provincial and time‐series data from 1980 to 2018 for China. Results show that the growth of TFP in the grain sector was driven by technical improvements. Moreover, the grain output and wheat production benefited more from TFP growth, whereas the growth in the usage of inputs drove the growth in rice and corn production. Findings also indicate that the laissez‐faire market‐oriented policy led to a dramatic fall in output while the intervention‐led policy resulted in a substantial rise in output, but neither of them fostered the growth of productivity. Conversely, the incentive‐led policy in a market‐oriented environment that raised the comparative profitability in grain production promoted the growth in both output and productivity in the grain sector. As the comparative advantage shifts away from agriculture in China, an appropriate support is thus necessary to stimulate farmers' incentive in growing grain crops. [ABSTRACT FROM AUTHOR]

In recent years, the Chinese government has implemented numerous regulations to address environmental deterioration. Several studies have examined the effect of environmental regulation policies on China's economic performance. However, whether environmental regulations can alleviate China's resource misallocation problem—a critical issue in transitional economies—remains unclear. This study fills this gap in the literature by employing the difference‐in‐differences method to examine how environmental regulations affect resource misallocation. We found that stringent environmental regulations have reduced the extent of resource misallocation in China, with resource reallocation being the driving force behind this improvement. The emission reduction mandate reduces investment inflows and hinders firms' entry into regions with low total factor productivity, while directing the flow of resources to highly productive areas. [ABSTRACT FROM AUTHOR]

The process of carbon neutrality does have economic costs; however, few studies have measured the cost and the economic neutral opportunities. This paper uses a dynamic computable general equilibrium (CGE) model to simulate China's carbon neutrality path from 2020 to 2060 and analyzes its economic impact. This paper innovatively adjusts the CGE modeling technology and simulates the boundary of the Porter hypothesis on the premise of economic neutrality. The results show that the carbon neutrality target may reduce the annual GDP growth rate by about 0.8% in 2020–2060. To make the carbon pricing method under the carbon neutrality framework meet the strong version of the Porter hypothesis (or economic neutrality), China must increase its annual total factor productivity by 0.56–0.57% in 2020–2060; this is hard to achieve. In addition, the study finds that China's 2030 carbon target has little impact on the economy, but the achievement of the 2060 carbon neutrality target will have a significant effect. Therefore, the paper believes that the key to carbon neutrality lies in the coexistence of technological innovation and carbon pricing to ensure that we can cope with global warming with the lowest cost and resistance. [ABSTRACT FROM AUTHOR]

As a favorite means to promote the development of green agriculture, agricultural insurance can not only encourage farmers to adopt green production technology and improve production efficiency, but also achieve the purpose of reducing the input of chemicals to protect the environment. This article aims to study the dynamic relationship between agricultural insurance, air pollution, and agricultural green total factor productivity using the panel vector auto-regressive method (PVAR) and panel data of 30 provinces in China from 2005 to 2018. The empirical results show that there is a significant cross-sectional dependence and the co-integration relationship between agricultural insurance, air pollution, and agricultural green total factor productivity. The increase in agricultural insurance can improve agricultural green total factor productivity and aggravate air pollution to a certain extent. However, serious air pollution does not improve agricultural green total factor productivity. Panel Granger causality test results show that agricultural insurance has a one-way causal relationship with green total factor productivity and air pollution, and so does air pollution with agricultural green total factor productivity. In addition, impulse response results show that increasing agricultural insurance or reducing air pollution can improve agricultural green total factor productivity. These conclusions have long-term practical implications for both agricultural policymakers and environmental managers. [ABSTRACT FROM AUTHOR]

Based on input-oriented Malmquist productivity index and parametric decomposition approach, this paper measures China’s green total factor productivity (TFP) index and its growth sources using a panel dataset of 30 provinces of China main-land from 1997 to 2014, and assesses the effect of CO2 intensity regulation on the green TFP growth in China. The results show that the green TFP has been growing at a yearly averaged rate of –1.51% during this period. The results also indicate that the policy of CO2 intensity regulation does not generate significant effect on the green total factor productivity of China’s provinces when using the two stage least squares (2SLS) estimator to control for the potential endogeneity biases. On the other hand, there exists significant heterogeneity in the effect of the CO2 intensity regulation on the green TFP of China’s provinces. Specifically, the CO2 intensity regulation promotes the green development performance of provinces in the eastern area, while it does not generate obvious impacts on the green TFP of provinces in both central and western areas. [ABSTRACT FROM AUTHOR]

This study seeks to evaluate the efficacy of macroeconomic revamping policies operationalized after the pandemic by fiscal and monetary regulators to fight the pandemic in China. This study aims to assess what the Chinese economic recovery implies after the pandemic regarding economic expansion and energy consumption of different economies utilizing an econometric approximation relying on data throughout the COVID-19 phase. Within the extended stage, Chinese economic development spillover impacts attain the same effect on upper-middle-income nations' economic expansion of 0.18 percent, next to the economic development, of lower-middle-income countries of 0.15 percent and high-income nations. We discover proofs of robust direct provincial spillovers, implying that provinces tend to construct a cluster of high-performing and low-performing areas, a procedure that accentuates regional earnings variances. Applying the experience of revamping previous financial crisis, we replicate the impact of the pandemic on the competence of these, and by far, other upper limit income nations to build back better from the pandemic to jobs occasioned by proofs of the pandemic. The spillover impact of China's economic revival past the pandemic phase's carries a critical effect on the expansion in energy consumption in high-income nations, subsequently middle-income nations. As total factor productivity headwinds underpin economic growth, fiscal policy is the only policy that probably sustains the pollution intensities and concurrently advances household well-being regarding consumption and jobs. [ABSTRACT FROM AUTHOR]

Standards have profound effects on industrial productivity, international trade, and economic growth. For latecomer countries such as China, standards, and standardization are an important means to upgrade their industrial structure. Using the framework of a sectoral system of innovation, this article leverages China's hardware industry to investigate the relationships among factors that influence the performance of industrial upgrading via standards. Expert opinions and the decision making trial and evaluation laboratory method are used to evaluate the relationships. The evaluation results show that if some firms in a system have the capability to execute standardization and innovation, with the support of the government to build and shape standardization institutions and infrastructures, the knowledge and technological capabilities of the entire industry can be enhanced, leading to the gradual introduction of high-quality standardized products into markets by firms even as they move toward more knowledge-intensive segments. This article contributes to two academic fields. First, standards are an important but often neglected topic in the innovation system literature. This article not only investigates the neglected topic but also explores the mechanism through which standards influence industrial upgrading at the meso-level. Second, several previous studies assumed that the drivers of supplier upgrades in developing countries are mostly driven by powerful buyer firms that are based in advanced countries. However, this article finds that customer requirement is not the most influential driver of the industrial upgrading of developing countries. [ABSTRACT FROM AUTHOR]