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Boosting green recovery: the impact of green fiscal policy on green total factor productivity

Author

Listed:
  • Xing Zhao

    (Nanjing Normal University)

  • Yifan Guo

    (Nanjing Normal University)

  • Zhen Liu

    (Nanjing Normal University)

  • Anteng Xiu

    (Shandong Technology and Business University)

Abstract

Green fiscal policy is crucial for achieving green economic recovery and improving green total factor productivity (GTFP). Based on this, using panel data from 30 regions in China from 2009 to 2020, this paper analyzes the impact of green fiscal policy on GTFP. The results show that: (1) Green fiscal policy can improve GTFP, thus achieving green economic recovery. After a series of robustness tests, the conclusion is still valid; (2) Green fiscal policy can have a stronger improvement effect on GTFP in regions with high levels of both public environmental concerns and economic development; (3) Green fiscal policy mainly improves GTFP by promoting green technology innovation and upgrading industrial structure. These findings not only enrich the literature on green fiscal policy and green recovery but also serve as a reference for governmental departments. The government should promote green technology innovation through green fiscal policy and raise public environmental concerns to help achieve green economic recovery.

Suggested Citation

  • Xing Zhao & Yifan Guo & Zhen Liu & Anteng Xiu, 2023. "Boosting green recovery: the impact of green fiscal policy on green total factor productivity," Economic Change and Restructuring, Springer, vol. 56(4), pages 2601-2619, August.
    • Handle: RePEc:kap:ecopln:v:56:y:2023:i:4:d:10.1007_s10644-023-09516-6
    DOI: 10.1007/s10644-023-09516-6
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    Cited by:

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    2. Farhad Taghizadeh-Hesary, 2023. "Fiscal Policy Instruments and Green Recovery in the Post-Covid-19 era," Economic Change and Restructuring, Springer, vol. 56(5), pages 2917-2920, October.

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    More about this item

    Keywords

    Green recovery; Green fiscal policy; Green total factor productivity; Green technology innovation; Industrial structure upgrading;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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