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Can strengthening legal systems enhance regional green total factor productivity?

Author

Listed:
  • Yang, Zongshang
  • Li, Juan
  • Zhu, Lijun
  • Chen, Haisong

Abstract

Using a quasi-natural experiment initiated by the establishment of environmental courts, this study examines the correlation between legal reinforcement and regional green total factor productivity. Results indicate that legal reinforcement significantly promotes regional green total factor productivity. Mechanism analysis indicates that regional green innovation capability mediates the association between legal reinforcement and regional green total factor production. The moderating effect indicates that the expansion of green financing can enhance the influence of legal reinforcement on regional green total factor productivity. Moreover, the mediation and moderating effects demonstrate variability between municipalities and non-municipalities.

Suggested Citation

  • Yang, Zongshang & Li, Juan & Zhu, Lijun & Chen, Haisong, 2025. "Can strengthening legal systems enhance regional green total factor productivity?," Finance Research Letters, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003174
    DOI: 10.1016/j.frl.2025.107053
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