IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i12p9459-d1169500.html
   My bibliography  Save this article

Can Ecological Governance Policies Promote High-Quality Economic Growth? Evidence from a Quasi-Natural Experiment in China

Author

Listed:
  • Zhuo Li

    (School of Investment Engineering Management, Dongbei University of Finance and Economics, Dalian 116023, China)

  • Liguo Wang

    (School of Investment Engineering Management, Dongbei University of Finance and Economics, Dalian 116023, China)

  • Wanyu Zhao

    (School of Economics and Management, Northeast Electric Power University, Jilin 132012, China)

Abstract

The implementation plan of the National Ecological Civilization Pilot Zone (Jiangxi) is an experimental policy aimed at exploring the path of ecological value realization, optimizing industrial structure, and ultimately promoting the green economic development of cities in ecologically distressed areas based on good ecological protection and construction. Its policy objectives are as follows: (1) provide policy references for the development of other ecologically distressed areas in other Chinese territories, and (2) achieve a win–win situation for both ecological improvement and economic development and promote the harmonious development of humans and nature. This study considers China’s ecological governance pilot policy as a “quasi-natural experiment” based on a panel of 81 Chinese cities in Jiangxi Province, China, from 2014 to 2020. A DID model is constructed to study the impact of China’s ecological governance policies on the quality development of Chinese cities in four dimensions: economic development, economic structure, ecological environment, and the disposable income of residents. The following impacts are observed: (1) Ecological governance policies have insignificant effects on GDP promotion, and the above findings still hold after a series of robustness tests, such as the parallel trend test and PSM-DID and placebo tests. (2) Ecological governance policies can significantly improve the rationalization of the economic structure, promote the improvement of ecological environments, and increase the disposable income of residents in the pilot cities. (3) Due to the strong control of local governments over regional economies in China, the stronger the government intervention in the economy, the greater its effect on policy inhibition. (4) The economic structure of ecologically distressed regions is relatively homogeneous, and the primary industry makes up a high proportion of agricultural production. Since China abolished agricultural taxes in 2006, local governments are unable to obtain government tax revenues from agricultural production. The ecological management policy can not only protect land fertility but also reduce the over-exploitation of land resources. It can indirectly increase the scale of agricultural production per unit of land (i.e., the same land resources can create more output value), prompt the transfer of agricultural labor to secondary and tertiary industries, and promote the development of secondary and tertiary industries, which in turn improves the source of local government tax revenue. Moreover, the increase in government tax revenue can increase investment in ecological environments. This in turn increases the tax revenue of local governments, and the increase in government tax revenue can increase investments in ecological and environmental management; this eventually results in a green and high-quality development path with respect to the positive cycle of ecological protection and economic development. Therefore, the scale of agricultural production per unit of land and government tax revenue are important mediating variables for ecological environment improvements, and the mediating effect is obvious.

Suggested Citation

  • Zhuo Li & Liguo Wang & Wanyu Zhao, 2023. "Can Ecological Governance Policies Promote High-Quality Economic Growth? Evidence from a Quasi-Natural Experiment in China," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9459-:d:1169500
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/12/9459/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/12/9459/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Vandenberghe, V. & Robin, S., 2004. "Evaluating the effectiveness of private education across countries: a comparison of methods," Labour Economics, Elsevier, vol. 11(4), pages 487-506, August.
    2. Du, Kerui & Cheng, Yuanyuan & Yao, Xin, 2021. "Environmental regulation, green technology innovation, and industrial structure upgrading: The road to the green transformation of Chinese cities," Energy Economics, Elsevier, vol. 98(C).
    3. Wu, Haitao & Hao, Yu & Ren, Siyu, 2020. "How do environmental regulation and environmental decentralization affect green total factor energy efficiency: Evidence from China," Energy Economics, Elsevier, vol. 91(C).
    4. Guo, Yuanzhi & Liu, Yansui, 2021. "Poverty alleviation through land assetization and its implications for rural revitalization in China," Land Use Policy, Elsevier, vol. 105(C).
    5. Zhou, Yang & Li, Yamei & Xu, Chenchen, 2020. "Land consolidation and rural revitalization in China: Mechanisms and paths," Land Use Policy, Elsevier, vol. 91(C).
    6. Yuan, Baolong & Cao, Xueyun, 2022. "Do corporate social responsibility practices contribute to green innovation? The mediating role of green dynamic capability," Technology in Society, Elsevier, vol. 68(C).
    7. Feng, Rundong & Wang, Kaiyong, 2021. "Spatiotemporal effects of administrative division adjustment on urban expansion in China," Land Use Policy, Elsevier, vol. 101(C).
    8. Guo, Miao & van Dam, Koen H. & Touhami, Noura Ouazzani & Nguyen, Remy & Delval, Florent & Jamieson, Craig & Shah, Nilay, 2020. "Multi-level system modelling of the resource-food-bioenergy nexus in the global south," Energy, Elsevier, vol. 197(C).
    9. Xuan Xie & Ke Li & Zhiqiang Liu & Hongshan Ai, 2021. "Curse or blessing: how does natural resource dependence affect city‐level economic development in China?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 413-448, April.
    10. Yaobin Wang & Ruitao Zhao & Ying Li & Rong Yao & Ruoxue Wu & Wenlin Li, 2023. "Spatial and Temporal Heterogeneity of Rural Habitat Level Evolution and Its Influencing Factors—A Case Study of Rural Villages in Nature a Reserve of China," Sustainability, MDPI, vol. 15(7), pages 1-25, March.
    11. Li, Pei & Lu, Yi & Wang, Jin, 2016. "Does flattening government improve economic performance? Evidence from China," Journal of Development Economics, Elsevier, vol. 123(C), pages 18-37.
    12. Shetu Ranjan Biswas & Md. Aftab Uddin & Swadip Bhattacharjee & Mouri Dey & Tarek Rana, 2022. "Ecocentric leadership and voluntary environmental behavior for promoting sustainability strategy: The role of psychological green climate," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1705-1718, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. Zhu, Junpeng & Lin, Boqiang, 2022. "Resource dependence, market-oriented reform, and industrial transformation: Empirical evidence from Chinese cities," Resources Policy, Elsevier, vol. 78(C).
    3. Jiamin Liu & Xiaoyu Ma & Bin Zhao & Qi Cui & Sisi Zhang & Jiaoning Zhang, 2023. "Mandatory Environmental Regulation, Enterprise Labor Demand and Green Innovation Transformation: A Quasi-Experiment from China’s New Environmental Protection Law," Sustainability, MDPI, vol. 15(14), pages 1-31, July.
    4. Du, Kerui & Liu, Xueyue & Zhao, Cheng, 2023. "Environmental regulation mitigates energy rebound effect," Energy Economics, Elsevier, vol. 125(C).
    5. Tan, Jing & Liu, Tianyi & Xu, Hao, 2024. "The environmental and economic consequences of environmental centralization: Evidence from China's environmental vertical management reform," China Economic Review, Elsevier, vol. 84(C).
    6. Xin Li & Chunlei Huang & Shaoguo Zhan & Yunxi Wu, 2022. "The Carbon Emission Reduction Effect of City Cluster—Evidence from the Yangtze River Economic Belt in China," Energies, MDPI, vol. 15(17), pages 1-14, August.
    7. Lin, Boqiang & Xu, Chongchong, 2024. "Reaping green dividend: The effect of China's urban new energy transition strategy on green economic performance," Energy, Elsevier, vol. 286(C).
    8. Qingsheng Bi & Weiqiang Chen & Ling Li & Xiuli Wang & Enxiang Cai, 2022. "Agricultural Population Supported in Rural Areas under Traditional Planting Mode Based on Opportunity Cost Analysis," Land, MDPI, vol. 11(8), pages 1-15, August.
    9. Lu Cai & Chaoqing Chai & Bangbang Zhang & Feng Yang & Wei Wang & Chengdong Zhang, 2022. "The Theoretical Approach and Practice of Farmland Rights System Reform from Decentralization to Centralization Promoting Agricultural Modernization: Evidence from Yuyang District in Shaanxi, China," Land, MDPI, vol. 11(12), pages 1-16, December.
    10. Yanyu Wang & Robert Tian, 2023. "Development of Rural Regions in China: Evidence of Industry Integration by the Residents of Yongan Village (Quanzhou City, China)," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    11. Leng Liu & Congjie Cao & Wei Song, 2023. "Bibliometric Analysis in the Field of Rural Revitalization: Current Status, Progress, and Prospects," IJERPH, MDPI, vol. 20(1), pages 1-18, January.
    12. Guo, Yuanyu & Xie, Wenlan & Yang, Yang, 2024. "Dual green innovation capability, environmental regulation intensity, and high-quality economic development in China: Can green and growth go together?," Finance Research Letters, Elsevier, vol. 63(C).
    13. Yi Li & Lili Ding & Yongliang Yang, 2020. "Can the Introduction of an Environmental Target Assessment Policy Improve the TFP of Textile Enterprises? A Quasi-Natural Experiment Based on the Huai River Basin in China," Sustainability, MDPI, vol. 12(4), pages 1-19, February.
    14. Hao, Yu & Guo, Yunxia & Li, Suixin & Luo, Shiyue & Jiang, Xueting & Shen, Zhiyang & Wu, Haitao, 2022. "Towards achieving the sustainable development goal of industry: How does industrial agglomeration affect air pollution?," Innovation and Green Development, Elsevier, vol. 1(1).
    15. Li, Kai & Qi, Shouzhou & Shi, Xunpeng, 2023. "Environmental policies and low-carbon industrial upgrading: Heterogenous effects among policies, sectors, and technologies in China," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    16. Kai Hu & Dandan Li & Daqian Shi & Wenli Xu, 2023. "Environmental regulation and energy efficiency: evidence from daily penalty policy in China," Journal of Regulatory Economics, Springer, vol. 63(1), pages 1-29, April.
    17. Zhou, Yang & Zhong, Zhen & Cheng, Guoqiang, 2023. "Cultivated land loss and construction land expansion in China: Evidence from national land surveys in 1996, 2009 and 2019," Land Use Policy, Elsevier, vol. 125(C).
    18. Zhuo, Chengfeng & Xie, Yuping & Mao, Yanhua & Chen, Pengqin & Li, Yiqiao, 2022. "Can cross-regional environmental protection promote urban green development: Zero-sum game or win-win choice?," Energy Economics, Elsevier, vol. 106(C).
    19. Ren, Yi-Shuai & Liu, Pei-Zhi & Klein, Tony & Sheenan, Lisa, 2024. "Does the low-carbon pilot cities policy make a difference to the carbon intensity reduction?," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 227-239.
    20. Xiaoping Zhou & Xiaotian Li & Xiaokun Gu, 2023. "How Does Urban-Rural Capital Flow Affect Rural Reconstruction near Metropolitan Areas? Evidence from Shanghai, China," Land, MDPI, vol. 12(3), pages 1-16, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9459-:d:1169500. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.