IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i12p9830-d1175312.html
   My bibliography  Save this article

Construction of the Pilot Free Trade Zone and Chinese Green Total Factor Energy Efficiency

Author

Listed:
  • Haikuo Zhang

    (College of Wealth Management, Ningbo University of Finance and Economics, Ningbo 315175, China)

  • Chaobo Zhou

    (School of International Economics and Trade, Ningbo University of Finance and Economics, Ningbo 315175, China)

Abstract

In the context of China’s “double carbon” target, paying attention to regional green total factor energy efficiency (GTFEE) is crucial for ensuring a fundamental guarantee for China’s free trade zones for the promotion of sustainable development in China’s free trade zones. However, the existing literature lacks focus on the environmental effects of these zones. This study takes advantage of the pilot free trade zone (PFTZ) implemented in 2013 as a natural experiment, utilizing panel data from 2009 to 2020 for Chinese prefecture-level cities. It adopted a progressive difference-in-difference model to assess the effect of the PFTZ on GTFEE. The findings demonstrate a remarkable improvement in GTFEE due to the PFTZ, which remains robust even after conducting robustness checks, including the parallel trend test. The PFTZ achieves this improvement by facilitating industrial structure upgrading and promoting green technology innovation. The positive influence of the PFTZ on GTFEE is particularly prominent in coastal cities and non-resource-based cities. This study contributes to the understanding of the environmental effects of free trade zones, providing a direct response to the key question of whether the free trade zone policy can effectively support high-quality economic development in the new era. Moreover, it offers useful policy implications for advancing further openness, winning the battle against pollution, and boosting high-quality economic development.

Suggested Citation

  • Haikuo Zhang & Chaobo Zhou, 2023. "Construction of the Pilot Free Trade Zone and Chinese Green Total Factor Energy Efficiency," Sustainability, MDPI, vol. 15(12), pages 1-13, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9830-:d:1175312
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/12/9830/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/12/9830/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    2. Ren, Siyu & Hao, Yu & Wu, Haitao, 2022. "The role of outward foreign direct investment (OFDI) on green total factor energy efficiency: Does institutional quality matters? Evidence from China," Resources Policy, Elsevier, vol. 76(C).
    3. Wen, Huwei & Liang, Weitao & Lee, Chien-Chiang, 2022. "Urban broadband infrastructure and green total-factor energy efficiency in China," Utilities Policy, Elsevier, vol. 79(C).
    4. Wesseh, Presley K. & Lin, Boqiang, 2018. "Optimal carbon taxes for China and implications for power generation, welfare, and the environment," Energy Policy, Elsevier, vol. 118(C), pages 1-8.
    5. Wu, Haitao & Hao, Yu & Ren, Siyu, 2020. "How do environmental regulation and environmental decentralization affect green total factor energy efficiency: Evidence from China," Energy Economics, Elsevier, vol. 91(C).
    6. Hu, Jin-Li & Wang, Shih-Chuan, 2006. "Total-factor energy efficiency of regions in China," Energy Policy, Elsevier, vol. 34(17), pages 3206-3217, November.
    7. Daqing Yao & John Whalley, 2016. "The China (Shanghai) Pilot Free Trade Zone: Background, Developments and Preliminary Assessment of Initial Impacts," The World Economy, Wiley Blackwell, vol. 39(1), pages 2-15, January.
    8. Chen, Wanling & Hu, Yao & Liu, Bei & Wang, Hui & Zheng, Mingbo, 2022. "Does the establishment of Pilot Free Trade Test Zones promote the transformation and upgradation of trade patterns?," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 114-128.
    9. Li, Lan-Bing & Hu, Jin-Li, 2012. "Ecological total-factor energy efficiency of regions in China," Energy Policy, Elsevier, vol. 46(C), pages 216-224.
    10. Zhou, Chaobo & Qi, Shaozhou, 2022. "Has the pilot carbon trading policy improved China's green total factor energy efficiency?," Energy Economics, Elsevier, vol. 114(C).
    11. Hao, Yu & Gai, Zhiqiang & Wu, Haitao, 2020. "How do resource misallocation and government corruption affect green total factor energy efficiency? Evidence from China," Energy Policy, Elsevier, vol. 143(C).
    12. Zhu, Minglei & Huang, Haiyan & Ma, Weiwen, 2023. "Transformation of natural resource use: Moving towards sustainability through ICT-based improvements in green total factor energy efficiency," Resources Policy, Elsevier, vol. 80(C).
    13. Lin, Faqin, 2017. "Trade openness and air pollution: City-level empirical evidence from China," China Economic Review, Elsevier, vol. 45(C), pages 78-88.
    14. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, vol. 91(4), pages 877-908, September.
    15. Gao, Da & Li, Ge & Yu, Jiyu, 2022. "Does digitization improve green total factor energy efficiency? Evidence from Chinese 213 cities," Energy, Elsevier, vol. 247(C).
    16. Guo, Wen & Liu, Xiaorui, 2022. "Market fragmentation of energy resource prices and green total factor energy efficiency in China," Resources Policy, Elsevier, vol. 76(C).
    17. Wu, Haitao & Hao, Yu & Ren, Siyu & Yang, Xiaodong & Xie, Guo, 2021. "Does internet development improve green total factor energy efficiency? Evidence from China," Energy Policy, Elsevier, vol. 153(C).
    Full references (including those not matched with items on IDEAS)

    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. Shaoyan Yang & Duodong Ding & Churen Sun, 2022. "Does Innovative City Policy Improve Green Total Factor Energy Efficiency? Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-30, October.
    2. Da Gao & Chang Liu & Xinyan Wei & Yang Liu, 2023. "Can River Chief System Policy Improve Enterprises’ Energy Efficiency? Evidence from China," IJERPH, MDPI, vol. 20(4), pages 1-17, February.
    3. Feng, Yidai & Yuan, Huaxi & Liu, Yaobin & Zhang, Shaohui, 2023. "Does new-type urbanization policy promote green energy efficiency? Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 124(C).
    4. Zebin Zheng & Wenjun Xiao & Ziye Cheng, 2023. "China’s Green Total Factor Energy Efficiency Assessment Based on Coordinated Reduction in Pollution and Carbon Emission: From the 11th to the 13th Five-Year Plan," Sustainability, MDPI, vol. 15(9), pages 1-20, April.
    5. Yu Hao & Jingwen Huang & Yunxia Guo & Haitao Wu & Siyu Ren, 2022. "Does the legacy of state planning put pressure on ecological efficiency? Evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3100-3121, November.
    6. Jiang, Yufan & Wang, Hongyan & Liu, Zuankuo, 2021. "The impact of the free trade zone on green total factor productivity ——evidence from the shanghai pilot free trade zone," Energy Policy, Elsevier, vol. 148(PB).
    7. Cui, Huanyu & Cao, Yuequn, 2023. "How can market-oriented environmental regulation improve urban energy efficiency? Evidence from quasi-experiment in China's SO2 trading emissions system," Energy, Elsevier, vol. 278(C).
    8. Wu, Haitao & Xue, Yan & Hao, Yu & Ren, Siyu, 2021. "How does internet development affect energy-saving and emission reduction? Evidence from China," Energy Economics, Elsevier, vol. 103(C).
    9. Huiling Liu & Jianhua Zhang & Hongyun Huang & Haitao Wu & Yu Hao, 2023. "Environmental good exports and green total factor productivity: Lessons from China," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1681-1703, June.
    10. Yiping Sun & Xiangyi Li & Tengyuan Zhang & Jiawei Fu, 2022. "Does Trade Policy Uncertainty Exacerbate Environmental Pollution?—Evidence from Chinese Cities," IJERPH, MDPI, vol. 19(4), pages 1-21, February.
    11. Senhua Huang & Lingming Chen, 2023. "The Impact of the Digital Economy on the Urban Total-Factor Energy Efficiency: Evidence from 275 Cities in China," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    12. Ren, Siyu & Hao, Yu & Wu, Haitao, 2022. "The role of outward foreign direct investment (OFDI) on green total factor energy efficiency: Does institutional quality matters? Evidence from China," Resources Policy, Elsevier, vol. 76(C).
    13. Feng, Wei & Sun, Shujun & Yuan, Hang, 2023. "Research on the efficiency of factor allocation in the pilot free trade zones," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 727-745.
    14. Wu, Qingyang & Wang, Yanying, 2022. "How does carbon emission price stimulate enterprises' total factor productivity? Insights from China's emission trading scheme pilots," Energy Economics, Elsevier, vol. 109(C).
    15. Jian Xue & Zeeshan Rasool & Raima Nazar & Ahmad Imran Khan & Shaukat Hussain Bhatti & Sajid Ali, 2021. "Revisiting Natural Resources—Globalization-Environmental Quality Nexus: Fresh Insights from South Asian Countries," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    16. Guangdong Li, 2019. "Spatiotemporal Dynamics of Ecological Total-Factor Energy Efficiency and Their Drivers in China at the Prefecture Level," IJERPH, MDPI, vol. 16(18), pages 1-23, September.
    17. Yu Hao & Yunxia Guo & Haitao Wu, 2022. "The role of information and communication technology on green total factor energy efficiency: Does environmental regulation work?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 403-424, January.
    18. Zhou, Chaobo & Qi, Shaozhou, 2022. "Has the pilot carbon trading policy improved China's green total factor energy efficiency?," Energy Economics, Elsevier, vol. 114(C).
    19. Li, Bo & Han, Yukai & Wang, Chensheng & Sun, Wei, 2022. "Did civilized city policy improve energy efficiency of resource-based cities? Prefecture-level evidence from China," Energy Policy, Elsevier, vol. 167(C).
    20. He, Ling-Yun & Huang, Geng, 2023. "Can importing improve the energy efficiency? Theory and evidence from Chinese industrial firms," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 451-469.

    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:jsusta:v:15:y:2023:i:12:p:9830-:d:1175312. 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.