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Government corruption, resource misallocation, and ecological efficiency

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  • Wang, Shuhong
  • Zhao, Danqing
  • Chen, Hanxue

Abstract

There is currently much discussion in China about anti-corruption, optimization of the allocation of resources, and ecological protection. This study considers data from 2006 to 2015 and uses statistical methods to examine the influence of corruption and resource misallocation on ecological efficiency. The findings show that both corruption and misallocation of resources have negative impacts on ecological efficiency, considering endogeneity. Further analysis shows that resource misallocation has mediating effects. Corruption can directly reduce ecological efficiency; however, it can also intensify resource misallocation, which leads to further decline in ecological efficiency. This research provides a helpful reference for the Chinese government to overcome its oversights, optimizing both resource allocation and ecological protection.

Suggested Citation

  • Wang, Shuhong & Zhao, Danqing & Chen, Hanxue, 2020. "Government corruption, resource misallocation, and ecological efficiency," Energy Economics, Elsevier, vol. 85(C).
  • Handle: RePEc:eee:eneeco:v:85:y:2020:i:c:s0140988319303688
    DOI: 10.1016/j.eneco.2019.104573
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