Do Central Inspections of Environmental Protection Affect the Efficiency of the Green Economy? Evidence from China’s Yangtze River Delta

Abstract

As an important part of China’s ecological civilization, the impact of the Central Inspections of Environmental Protection (CIEP) on the development of a green economy has been widely recognized. This article uses the first round of the Central Inspections of Environmental Protection (CIEP) and the “look-back” in cities above the prefecture level in China’s Yangtze River Delta as a quasi-natural experiment to construct more scientific green economic efficiency indicators based on OH (2010), and employs a multi-period spatial DID (difference-in-differences) model to empirically investigate the impact of the CIEP on the urban green economic efficiency. This study confirms that: (1) The Central Inspections of Environmental Protection have a significant contribution to the green economic efficiency of cities, and the “look-back” is of great significance to the long-term green development of cities. (2) The Central Inspections of Environmental Protection have had a positive impact on the building of a pro-clear government–business relationship in coastal and riverine areas, promoting the application of green technology research and development, and, thus, improving the green economic efficiency of cities. (3) Under the constraints of the central environmental protection inspection system, the southern Jiangsu region has been effective in promoting the green transformation of enterprises to enhance the efficiency of the city’s green economy due to its location endowment and historical tradition of opening ports and trading in the late Qing Dynasty. (4) Under the pressure of environmental regulation, some enterprises chose to relocate their production to non-inspected areas, which had a negative spillover effect on the green economic efficiency of the cities they moved into. Policy Implications: The impact of central environmental inspections on the efficiency of urban green economies varies from time to time and place to place, and it is important to regulate the use of administrative resources and strengthen inter-provincial coordination to promote synergy and cooperation across provincial environmental inspection systems. This paper provides ideas for understanding the logical starting point for the implementation of the central environmental inspection system, and for better promoting the green transformation and high-quality development of regional economies based on national characteristics.