Impact of Air Pollution Regulation and Technological Investment on Sustainable Development of Green Economy in Eastern China: Empirical Analysis with Panel Data Approach

Abstract

In eastern China, where air pollution is severe and government regulations are being tightened, green economic development has become the government’s goal. This paper makes an improvement in the measurement of the Green Total Factor Productivity (GTFP) index, and an intensity measure method reciprocal of the ratio of air pollutant emissions to the GDP is adopted to estimate the level of air pollution regulation. Applying an air pollution monitoring data sample of 87 cities in eastern China, empirically tests the relationship between air pollution regulation, technological investment, and green economic growth. The positive influence of air pollution regulation on GTFP in the Beijing-Tianjin-Hebei region is higher than that in the Yangtze River Delta region. Therefore, improving the coordinated monitoring mechanism of environment and economic development can achieve co-benefits. Technological investment can promote the improvement of GTFP, but it could have a negative impact on green technology progress in the Beijing-Tianjin-Hebei region. The output efficiency of technological investment should be improved. Technological investment has a positive influence on green technology efficiency and green technology progress in the Yangtze River Delta. The robustness test suggests that the influence direction and significance of the core variables were unchanged, which supports the research conclusion.