Multidimensional performance assessment, government competition and ecological welfare performance

Abstract

Improving the efficiency of converting natural resources into social benefits is an important issue for sustainable development in today’s world. Based on this background this paper applies the super-efficient SBM model with non-expected output to measure the ecological welfare performance (EWP) of Chinese provinces from 2005–2019, and explores the relationship between government competition and EWP under different assessment systems. The research results show that government competition under economic performance assessment is self-interested and short-sighted, which can negatively affect ecological welfare performance in the current period as well as in the next four years. In contrast, government competition under the environmental assessment system promotes EWP in both the current and long term, balancing short-term and long-term benefits. The results of the spatial GMM found that government competition under economic performance appraisal can deteriorate EWP in local as well as surrounding areas, but government competition under the environmental assessment system can achieve an increase in local ecological welfare performance and the spillover effect is not significant. To alleviate the limitations of a single appraisal system, this paper incorporates both economic and ecological appraisals into the multidimensional appraisal system. When the weights of both are between 1:9 and 3:7, the government competition under multidimensional performance appraisal can promote both current and longer-term EWP, and achieve its own ecological welfare performance without affecting the surrounding areas.