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The role of new quality productivity in driving China's green economic growth

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  • Zhang, Hanbin
  • Chen, Yi

Abstract

New quality productivity (NQP) is the intrinsic requirement and key force for driving green economic growth (GEG). To investigate how NQP influences GEG, this paper first measures the degree of NQP and green gross domestic product (GGDP) for China using the entropy method and the System of Environmental-Economic Accounting method, respectively. Based on a panel dataset of China's 30 provincial regions from 2012 to 2021 and a series of econometric analyses, we found that the NQP exerts a positive and significant role in promoting GGDP. Second, the mechanism analysis through the mediation effect model indicates that stimulating green technology innovation, accelerating industrial structure upgrading, and optimizing resource allocation efficiency are the main channels through which NQP promotes GGDP. A further discussion based on spatial econometrics suggests that the NQP also shows a positive spatial spillover effect in influencing GGDP. Lastly, we present the policy implications on how to drive GEG through NQP.

Suggested Citation

  • Zhang, Hanbin & Chen, Yi, 2025. "The role of new quality productivity in driving China's green economic growth," International Review of Economics & Finance, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:reveco:v:102:y:2025:i:c:s1059056025004782
    DOI: 10.1016/j.iref.2025.104315
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