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Government advocacy for ecological value reshapes the environmental Kuznets curve: Evidence from China’s ecosystem product value realization

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  • Jin, Minghui
  • Liu, Kai-di
  • Wu, Shuyao
  • Lou, Jia

Abstract

Ecosystem product value realization (EPVR) employs economic means to protect ecological environment, which is essential for promoting ecological civilization and strengthening environmental governance. This study employs a two-way fixed effects panel model using data from 288 cities in China between 2010 and 2022 to examine the impact of EPVR on carbon emissions reduction, reshaping the Environmental Kuznets Curve (EKC). The results showed: (1) EPVR has an obvious carbon emissions reduction effect, which is heterogeneous across different cities and stronger for non-resource-based cities, those that need energy structure upgrades, and cities with high public environmental concern. (2) An inverted U-shaped relationship is evident between economic development and carbon emissions in China, which aligns with the EKC hypothesis. Introducing EPVR as a moderating variable significantly promotes the early arrival of the EKC inflection point and reduces its peak value. (3) Green innovation, environmental regulation, industrial structure, and ecosystem services are four main paths through which EPVR affects the EKC. Our study provides a reference for further improving China’s ecological policy and realizing the carbon neutrality goal at an early date, while also contributing to the realization of global sustainable development goals.

Suggested Citation

  • Jin, Minghui & Liu, Kai-di & Wu, Shuyao & Lou, Jia, 2026. "Government advocacy for ecological value reshapes the environmental Kuznets curve: Evidence from China’s ecosystem product value realization," Economic Analysis and Policy, Elsevier, vol. 90(C), pages 1484-1503.
    • Handle: RePEc:eee:ecanpo:v:90:y:2026:i:c:p:1484-1503
    DOI: 10.1016/j.eap.2026.02.031
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