IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v18y2021i12p6658-d578868.html
   My bibliography  Save this article

Green Investment Changes in China: A Shift-Share Analysis

Author

Listed:
  • Ruxu Sheng

    (School of Public Policy and Management, Tsinghua University, Beijing 100084, China)

  • Rong Zhou

    (School of Public Policy and Management, Tsinghua University, Beijing 100084, China)

  • Ying Zhang

    (International Business School, Brandeis University, Waltham, MA 02453, USA)

  • Zidi Wang

    (School of Public Policy and Management, Tsinghua University, Beijing 100084, China)

Abstract

As China’s economic development has entered a new phase, China needs to seek a new path of green transformation development to coordinate the economic growth with environmental mitigation. From 2002 to 2017, green investment in China grew from 118.56 billion Chinese yuan to 950.86 billion Chinese yuan, increasing more than seven times. In this study, a homothetic shift-share analysis (HSSA) is used to understand how green investment changed and was used to decompose the change of provincial green investment in China from 2002 to 2017 into four driving factors: the national economic growth effect ( NEG ), national green investment structure effect ( NIS ), homothetic regional green investment competition effect ( HRIC ), and regional green investment allocation effect ( RIA ). The results indicate that these four factors had various regional and temporal characteristics, although green investment increased in all provinces during this period. More specifically, the NEG was more significant in the east than in other regions. The regional differences of NEG were relatively large in the first two periods (2002–2007 and 2007–2012) and began to shrink in the third period (2012–2017). The NIS shared the same characteristics as the NEG . In terms of HRIC , the central region was ahead of the eastern and western regions, and relatively many eastern provinces were with negative HRIC . The HRIC of most provinces showed a trend of “low/medium-medium/high-low”. The RIA inhibited green investment growth in most provinces and showed a “high-low-high” trend regarding the change from 2002 to 2017. Our study suggests that it is necessary to coordinate the growth of green investment across different regions and establish an ecological compensation mechanism.

Suggested Citation

  • Ruxu Sheng & Rong Zhou & Ying Zhang & Zidi Wang, 2021. "Green Investment Changes in China: A Shift-Share Analysis," IJERPH, MDPI, vol. 18(12), pages 1-15, June.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:12:p:6658-:d:578868
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/18/12/6658/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/18/12/6658/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marianna Gilli & Giovanni Marin & Massimiliano Mazzanti & Francesco Nicolli, 2017. "Sustainable development and industrial development: manufacturing environmental performance, technology and consumption/production perspectives," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 6(2), pages 183-203, April.
    2. Lin, Gang & Jiang, Dong & Fu, Jingying & Wang, Di & Li, Xiang, 2019. "A spatial shift-share decomposition of energy consumption changes in China," Energy Policy, Elsevier, vol. 135(C).
    3. María del Carmen Pérez-González & Lidia Valiente-Palma, 2021. "Cooperative Societies and Sustainability: A Spatial Analysis of Andalusia as a Tool for Implementing Territorial Development Policies, Strategies and Initiatives," Sustainability, MDPI, vol. 13(2), pages 1-16, January.
    4. Donghui Lv & Huiying Gao & Yu Zhang, 2021. "Rural Economic Development Based on Shift-Share Analysis in a Developing Country: A Case Study in Heilongjiang Province, China," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    5. Leete, Simeon & Xu, Jingjing & Wheeler, David, 2013. "Investment barriers and incentives for marine renewable energy in the UK: An analysis of investor preferences," Energy Policy, Elsevier, vol. 60(C), pages 866-875.
    6. Vaona, Andrea, 2013. "The sclerosis of regional electricity intensities in Italy: An aggregate and sectoral analysis," Applied Energy, Elsevier, vol. 104(C), pages 880-889.
    7. Yajie Liu & Feng Dong, 2019. "How Industrial Transfer Processes Impact on Haze Pollution in China: An Analysis from the Perspective of Spatial Effects," IJERPH, MDPI, vol. 16(3), pages 1-27, February.
    8. Jie Ouyang & Kezhong Zhang & Bo Wen & Yuanping Lu, 2020. "Top-Down and Bottom-Up Approaches to Environmental Governance in China: Evidence from the River Chief System (RCS)," IJERPH, MDPI, vol. 17(19), pages 1-23, September.
    9. Yuan Zhou & Xin Li & Rasmus Lema & Frauke Urban, 2016. "Comparing the knowledge bases of wind turbine firms in Asia and Europe: Patent trajectories, networks, and globalisation," Science and Public Policy, Oxford University Press, vol. 43(4), pages 476-491.
    10. Lionel Artige & Leif Neuss, 2014. "A New Shift-Share Method," Growth and Change, Wiley Blackwell, vol. 45(4), pages 667-683, December.
    11. You Zheng & Jianzhong Xiao & Jinhua Cheng, 2020. "Industrial Structure Adjustment and Regional Green Development from the Perspective of Mineral Resource Security," IJERPH, MDPI, vol. 17(19), pages 1-18, September.
    12. Barbieri, Nicolò & Marzucchi, Alberto & Rizzo, Ugo, 2020. "Knowledge sources and impacts on subsequent inventions: Do green technologies differ from non-green ones?," Research Policy, Elsevier, vol. 49(2).
    13. Esteban-Marquillas, J. M., 1972. "I. A reinterpretation of shift-share analysis," Regional and Urban Economics, Elsevier, vol. 2(3), pages 249-255, October.
    14. Grossi, Luigi & Mussini, Mauro, 2018. "A spatial shift-share decomposition of electricity consumption changes across Italian regions," Energy Policy, Elsevier, vol. 113(C), pages 278-293.
    15. Kemble Stokes, H. Jr., 1974. "Shift share once again," Regional and Urban Economics, Elsevier, vol. 4(1), pages 57-60, June.
    16. Kong, Dejing & Zhou, Yuan & Liu, Yufei & Xue, Lan, 2017. "Using the data mining method to assess the innovation gap: A case of industrial robotics in a catching-up country," Technological Forecasting and Social Change, Elsevier, vol. 119(C), pages 80-97.
    17. Elżbieta Antczak & Karolina Lewandowska-Gwarda, 2019. "How Fast Is Europe Getting Old? Analysis of Dynamics Applying the Spatial Shift–Share Approach," Sustainability, MDPI, vol. 11(20), pages 1-21, October.
    18. Yuan Zhou & Zhongzhen Miao & Frauke Urban, 2020. "China’s leadership in the hydropower sector: identifying green windows of opportunity for technological catch-up," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(5), pages 1319-1343.
    19. Libo Li & Wenbing Wu & Mingyu Zhang & Lu Lin, 2021. "Linkage Analysis between Finance and Environmental Protection Sectors in China: An Approach to Evaluating Green Finance," IJERPH, MDPI, vol. 18(5), pages 1-16, March.
    20. Edgar S. Dunn, 1960. "A Statistical And Analytical Technique For Regional Analysis," Papers in Regional Science, Wiley Blackwell, vol. 6(1), pages 97-112, January.
    21. Perruchas, François & Consoli, Davide & Barbieri, Nicolò, 2020. "Specialisation, diversification and the ladder of green technology development," Research Policy, Elsevier, vol. 49(3).
    22. Liao, Xianchun & Shi, Xunpeng (Roc), 2018. "Public appeal, environmental regulation and green investment: Evidence from China," Energy Policy, Elsevier, vol. 119(C), pages 554-562.
    23. Bao Zhu & Shiting Zhai & Jing He, 2018. "Is the Development of China’s Financial Inclusion Sustainable? Evidence from a Perspective of Balance," Sustainability, MDPI, vol. 10(4), pages 1-16, April.
    24. Eyraud, Luc & Clements, Benedict & Wane, Abdoul, 2013. "Green investment: Trends and determinants," Energy Policy, Elsevier, vol. 60(C), pages 852-865.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hung, Ngo Thai, 2023. "Green investment, financial development, digitalization and economic sustainability in Vietnam: Evidence from a quantile-on-quantile regression and wavelet coherence," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    2. Justin Joseph & Joe Thomas Karackattu, 2022. "State actions and the environment: examining the concept of ecological security in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 13057-13082, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ruxu Sheng & Juntian Du & Songqi Liu & Changan Wang & Zidi Wang & Xiaoqian Liu, 2021. "Solar Photovoltaic Investment Changes across China Regions Using a Spatial Shift-Share Analysis," Energies, MDPI, vol. 14(19), pages 1-14, October.
    2. Jian Luo & Yongchun Yang, 2023. "Rediscovering the Shift-Share EM2 Model: A Decomposition Framework of Unbalanced Employment Growth at the Industrial Level," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    3. Roberto Patuelli & Aura Reggiani & Peter Nijkamp & Uwe Blien, 2006. "New Neural Network Methods for Forecasting Regional Employment: an Analysis of German Labour Markets," Spatial Economic Analysis, Taylor & Francis Journals, vol. 1(1), pages 7-30.
    4. Selting, Anne C. & Loveridge, Scott, 1992. "A Summary Of The Literature On Shift-Share Analysis," Staff Papers 14086, University of Minnesota, Department of Applied Economics.
    5. Francesca Silvia Rota & Marco Bagliani & Paolo Feletig, 2020. "Breaking the Black-Box of Regional Resilience: A Taxonomy Using a Dynamic Cumulative Shift-Share Occupational Approach," Sustainability, MDPI, vol. 12(21), pages 1-27, October.
    6. Olimpia Neagu, 2019. "The Link between Economic Complexity and Carbon Emissions in the European Union Countries: A Model Based on the Environmental Kuznets Curve (EKC) Approach," Sustainability, MDPI, vol. 11(17), pages 1-27, August.
    7. Aying Liu & Shujie Yao & Zongyi Zhang, 1999. "Economic Growth and Structural Changes in Employment and Investments in China, 1985–94," Economic Change and Restructuring, Springer, vol. 32(3), pages 171-190, October.
    8. Hötte, Kerstin & Pichler, Anton & Lafond, François, 2021. "The rise of science in low-carbon energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    9. Jacques Poot & Bill Cochrane & Sandra Baxendine, 2005. "Description and Spatial Analysis of Employment Change in New Zealand Regions 1986-2001," Population Studies Centre Discussion Papers dp-57, University of Waikato, Te Ngira Institute for Population Research.
    10. Duro, Juan Antonio & Esteban, Joan, 1998. "Factor decomposition of cross-country income inequality, 1960-1990," Economics Letters, Elsevier, vol. 60(3), pages 269-275, September.
    11. Pilar Campoy-Muñoz & Manuel Alejandro Cardenete & M. Carmen Delgado, 2015. "Employment trends in the key sectors of the Andalusian economy," ERSA conference papers ersa15p91, European Regional Science Association.
    12. Umberto Di Maggio & Giuseppe Notarstefano & Giuseppe Terzo, 2020. "The spatial determinants of employment growth in the cooperative sector: an analysis of Italian provinces," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 74(3-4), pages 123-134, July-Dece.
    13. Losacker, Sebastian, 2022. "‘License to green’: Regional patent licensing networks and green technology diffusion in China," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    14. Silvia Puiu & Mihaela Tinca Udriștioiu & Liliana Velea, 2022. "Air Pollution Management: A Multivariate Analysis of Citizens’ Perspectives and Their Willingness to Use Greener Forms of Transportation," IJERPH, MDPI, vol. 19(21), pages 1-15, November.
    15. Mazzanti, Massimiliano & Montini, Anna, 2010. "Embedding the drivers of emission efficiency at regional level -- Analyses of NAMEA data," Ecological Economics, Elsevier, vol. 69(12), pages 2457-2467, October.
    16. Kala Seetharam Sridhar, 2017. "Economic Change And Specialization In India'S Cities," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 29(1), pages 63-87, March.
    17. Francesca Pantaleone & Roberto Fazioli, 2022. "Lock-In Effects on the Energy Sector: Evidence from Hydrogen Patenting Activities," Energies, MDPI, vol. 15(9), pages 1-15, April.
    18. Yuanqiao Chen & Zhisong Chen & Jianhui Peng, 2021. "How does emission right-based lending contribute to sustainable production and green financing? A modelling study," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13945-13972, September.
    19. Ireneusz Dabrowski & Lukasz Mach & Arkadiusz Kuswik & Lukasz Mikolajczyk, 2020. "Classical and Dynamic Shift-Share Cost Analysis for the Construction Sector in the European Union," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 760-775.
    20. Artur Santoalha & Davide Consoli & Fulvio Castellacci, 2019. "Do digital skills foster green diversification? A study of European regions," Working Papers on Innovation Studies 20191029, Centre for Technology, Innovation and Culture, University of Oslo.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:18:y:2021:i:12:p:6658-:d:578868. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.