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The Impact of Industrial Green Transformation on Regional Economic Development in China: An Empirical Study Based on Spatial and Threshold Effects

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  • Xinan Gu

    (Business School, University of Shanghai for Science and Technology, Jungong Road 516, Yangpu District, Shanghai 200093, China)

  • Lingying Pan

    (Business School, University of Shanghai for Science and Technology, Jungong Road 516, Yangpu District, Shanghai 200093, China)

Abstract

At present, the high energy consumption, heavy pollution emissions, serious ecological damage and other problems of China’s industry are particularly prominent. Therefore, industrial governance is crucial and it is imperative to carry out industrial green transformation (IGT). Due to the differences in economic development, industrial structure and other aspects, the influence of IGT on different regions’ economic development has not been fully discussed. Using the provincial panel data of China from 2005 to 2019, this paper calculated each region’s IGT by constructing an index system and we discuss its impact on regional economic development, based on the spatial and threshold models. The results show that IGT in the eastern region is significantly higher than in the central and western regions. The IGT has a positive correlation in space and a significant positive spatial spillover effect on regional economic development. Moreover, there is a significant threshold effect of technological innovation in the influence of IGT on regional economic development. When technological innovation is low, the impact of IGT on regional economic development is not significant. As technological innovation rises and finally exceeds the critical point, the IGT will significantly promote regional economic development. This paper provides a scientific analysis and objective conclusions that may help to avoid radical measures in some regions in the process of “green development”.

Suggested Citation

  • Xinan Gu & Lingying Pan, 2022. "The Impact of Industrial Green Transformation on Regional Economic Development in China: An Empirical Study Based on Spatial and Threshold Effects," Sustainability, MDPI, vol. 14(19), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:12913-:d:938015
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    References listed on IDEAS

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    1. Watanabe, Michio & Tanaka, Katsuya, 2007. "Efficiency analysis of Chinese industry: A directional distance function approach," Energy Policy, Elsevier, vol. 35(12), pages 6323-6331, December.
    2. Naotaka Sawada, 2010. "Technology Gap Matters on Spillover," Review of Development Economics, Wiley Blackwell, vol. 14(1), pages 103-120, February.
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    1. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    2. Tobechukwu Eleogu & Franciscamary Okonkwo & Rosita Eberechukwu Daraojimba & Bukola A. Odulaja & Damilola Emmanuel Ogedengbe & Chioma Ann Udeh, 2024. "Revolutionizing Renewable Energy Workforce Dynamics: HR’s Role in Shaping the Future," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(12), pages 402-422, January.

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