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Environmental regulation induces technological change and green transformation in Chinese cities

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Abstract

Improving green total factor productivity is an important step for China’s green transformation. By proposing a meta-frontier Malmquist Luenberger productivity indicator, this paper attempts to investigate China’s green productivity evolution and its determinants at the city level during the period of 2003–2016. Our results reveal that China has improved green productivity, and that exogenous technological change acts as the dominant force to drive the change of green productivity. Overall, the effects of technological change induced by environmental regulation (TCIER) have not been fully manifested. Further, we find significant spatial heterogeneities in TCIER: western China shows the highest contribution of TCIER to changes in green productivity, followed by central China, and the contribution is negative in eastern China, due to the region’s relatively lower growth rate in environmental regulation intensity. Nevertheless, from the perspective of evolutionary trends, the TCIER scores of all three regions exhibit upward trends during the review period, ultimately contributing positively to green productivity growth during the 12th Five-Year Plan period (2011–2015).

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Notes

  1. For example, in 2011, the State Council abolished Chaohu in Anhui Province, and established Tongren and Bijie in Guizhou Province, and Sansha in Hainan Province.

  2. https://beta.sedac.ciesin.columbia.edu/data/set/sdei-global-annual-gwr-pm2-5-modis-misr-seawifs-aod

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Acknowledgements

We appreciate the editor and anonymous reviewers for their valuable comments.

Funding

The study was financially supported by the National Natural Science Foundation of China (Grants No. 72073105, 71774122, 71874177, 71874064, and 72022019).

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Correspondence to Hongbo Duan.

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This article is part of the Topical Collection on Mitigation and adaptation strategies under uncertainties in East Asia

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Yang, M., Xu, J., Yang, F. et al. Environmental regulation induces technological change and green transformation in Chinese cities. Reg Environ Change 21, 41 (2021). https://doi.org/10.1007/s10113-021-01759-1

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  • DOI: https://doi.org/10.1007/s10113-021-01759-1

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