IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v154y2021i2d10.1007_s11205-020-02576-5.html
   My bibliography  Save this article

Construction of China’s Green Institutional Environmental Index: Using Functional Data Analysis method

Author

Listed:
  • Xiaolei Yang

    (Wuhan University)

  • Lingyun He

    (China University of Mining and Technology)

  • Sihua Tian

    (China University of Mining and Technology)

  • Yufei Xia

    (Jiangsu Normal University)

  • Deqing Wang

    (China University of Mining and Technology)

Abstract

This paper proposes the concept of green institutional environment, and constructs China’s green institutional environmental system from the three dimensions of green supervision and public institution, green standardized institution and green accounting institution. Based on the relevant data from 2007 to 2017, this paper simulates China’s green institutional environmental index through the Functional Data Analysis method and the functional entropy weight method. The results show that, first, there is a general upward trend in China’s green institutional environmental index, with a range of [0.2–0.8]; the minimum value of this index is 0, and there is no maximum value. The larger the value, the higher the level of green institutional environment. Second, at the present stage, China’s green standardized institution is relatively well-developed, accounting for the largest weight (i.e., [0.932–0.940]) in the green institutional environmental index system; the green accounting institution plays a supporting role, with a weight of [0.030–0.040], due to the fact that the Chinese government has made great efforts to implement policies at this level; the development of green supervision and public institution is under-developed and has little influence on the green institutional environmental index, with a weight of [0.0285–0.0305]. Finally, the proposed green institutional environmental index remains robust when equalizing the weights of the three dimensions.

Suggested Citation

  • Xiaolei Yang & Lingyun He & Sihua Tian & Yufei Xia & Deqing Wang, 2021. "Construction of China’s Green Institutional Environmental Index: Using Functional Data Analysis method," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(2), pages 559-582, April.
    • Handle: RePEc:spr:soinre:v:154:y:2021:i:2:d:10.1007_s11205-020-02576-5
    DOI: 10.1007/s11205-020-02576-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-020-02576-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-020-02576-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shai Bernstein & Josh Lerner & Filippo Mezzanotti, 2019. "Private Equity and Financial Fragility during the Crisis," The Review of Financial Studies, Society for Financial Studies, vol. 32(4), pages 1309-1373.
    2. Alexander Dyck & Natalya Volchkova & Luigi Zingales, 2008. "The Corporate Governance Role of the Media: Evidence from Russia," Journal of Finance, American Finance Association, vol. 63(3), pages 1093-1135, June.
    3. Telle, Kjetil & Larsson, Jan, 2007. "Do environmental regulations hamper productivity growth? How accounting for improvements of plants' environmental performance can change the conclusion," Ecological Economics, Elsevier, vol. 61(2-3), pages 438-445, March.
    4. Aloi, Marta & Tournemaine, Frederic, 2011. "Growth effects of environmental policy when pollution affects health," Economic Modelling, Elsevier, vol. 28(4), pages 1683-1695, July.
    5. Ang, B.W. & Choong, W.L. & Ng, T.S., 2015. "A framework for evaluating Singapore’s energy security," Applied Energy, Elsevier, vol. 148(C), pages 314-325.
    6. Alraheb, Tammuz H. & Nicolas, Christina & Tarazi, Amine, 2019. "Institutional environment and bank capital ratios," Journal of Financial Stability, Elsevier, vol. 43(C), pages 1-24.
    7. Francisco J. Buera & Joseph P. Kaboski & Yongseok Shin, 2011. "Finance and Development: A Tale of Two Sectors," American Economic Review, American Economic Association, vol. 101(5), pages 1964-2002, August.
    8. Brown, James R. & Martinsson, Gustav & Petersen, Bruce C., 2012. "Do financing constraints matter for R&D?," European Economic Review, Elsevier, vol. 56(8), pages 1512-1529.
    9. Yeseul Kim & Dong-Eun Rhee, 2019. "Do Stringent Environmental Regulations Attract Foreign Direct Investment in Developing Countries? Evidence on the “Race to the Top” from Cross-Country Panel Data," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(12), pages 2796-2808, September.
    10. Chen, Charles J.P. & Li, Zengquan & Su, Xijia & Sun, Zheng, 2011. "Rent-seeking incentives, corporate political connections, and the control structure of private firms: Chinese evidence," Journal of Corporate Finance, Elsevier, vol. 17(2), pages 229-243, April.
    11. Maskus, Keith E. & Neumann, Rebecca & Seidel, Tobias, 2012. "How national and international financial development affect industrial R&D," European Economic Review, Elsevier, vol. 56(1), pages 72-83.
    12. Glomm, Gerhard & Kawaguchi, Daiji & Sepulveda, Facundo, 2008. "Green taxes and double dividends in a dynamic economy," Journal of Policy Modeling, Elsevier, vol. 30(1), pages 19-32.
    13. Ling-Yun He & Li Liu, 2018. "Stand by or Follow? Responsibility Diffusion Effects and Green Credit," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(8), pages 1740-1760, June.
    14. Hamamoto, Mitsutsugu, 2006. "Environmental regulation and the productivity of Japanese manufacturing industries," Resource and Energy Economics, Elsevier, vol. 28(4), pages 299-312, November.
    15. Forbes, Daniel P. & Kirsch, David A., 2011. "The study of emerging industries: Recognizing and responding to some central problems," Journal of Business Venturing, Elsevier, vol. 26(5), pages 589-602, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lin, Boqiang & Wang, You, 2024. "How does natural disasters affect China agricultural economic growth？," Energy, Elsevier, vol. 296(C).
    2. Lin, Boqiang & Wang, You, 2024. "How does the natural disasters affect urban-rural income gap? Empirical evidence from China," Energy, Elsevier, vol. 295(C).
    3. Kou, Po & Shi, Jianhua, 2024. "Dynamic evolution of China's government environmental regulation capability and its impact on the coupling coordinated development of the economy-environment," Socio-Economic Planning Sciences, Elsevier, vol. 91(C).
    4. Wang, You & Gong, Xu, 2022. "Analyzing the difference evolution of provincial energy consumption in China using the functional data analysis method," Energy Economics, Elsevier, vol. 105(C).
    5. Xiaolei Yang & Shuiying Zhong, 2022. "The Combined Effect of Environmental Policies on China’s Renewable Energy Development: A Multi-Perspective Study Based on Semiparametric Regression Model," IJERPH, MDPI, vol. 20(1), pages 1-15, December.

    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. Gheorghe Hurduzeu & Radu Lupu & Iulia Lupu & Adrian Cantemir Calin, 2022. "The Nexus Between Research and Development, Protection of Intellectual Property Rights and Financial Development. A European Perspectiv," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(Special16), pages 970-970, November.
    2. Maskus, Keith E. & Milani, Sahar & Neumann, Rebecca, 2019. "The impact of patent protection and financial development on industrial R&D," Research Policy, Elsevier, vol. 48(1), pages 355-370.
    3. Liu, Shasha & Yin, Shanshan & Yin, Chuan & Sheng, Yan, 2021. "Does the price of natural resources affect firms’ total factor productivity? Evidence from a natural experiment in China," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 37-50.
    4. Chen, Shiu-Sheng, 2017. "Exchange rate undervaluation and R&D activity," Journal of International Money and Finance, Elsevier, vol. 72(C), pages 148-160.
    5. Johan Brolund & Robert Lundmark, 2017. "Effect of Environmental Regulation Stringency on the Pulp and Paper Industry," Sustainability, MDPI, vol. 9(12), pages 1-16, December.
    6. Zhou, Lin & Fan, Jianshuang & Hu, Mingzhi & Yu, Xiaofen, 2024. "Clean air policy and green total factor productivity: Evidence from Chinese prefecture-level cities," Energy Economics, Elsevier, vol. 133(C).
    7. Sangeeta Bansal & Massimo Filippini & Suchita Srinivasan, 2023. "How Regulation Might Fail to Reduce Energy Consumption While Still Stimulating Total Factor Productivity Growth," CER-ETH Economics working paper series 23/379, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    8. Igan, Deniz & Mirzaei, Ali, 2020. "Does going tough on banks make the going get tough? Bank liquidity regulations, capital requirements, and sectoral activity," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 688-726.
    9. Xu Dong & Yali Yang & Xiaomeng Zhao & Yingjie Feng & Chenguang Liu, 2021. "Environmental Regulation, Resource Misallocation and Industrial Total Factor Productivity: A Spatial Empirical Study Based on China’s Provincial Panel Data," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    10. Xu, Gang & Yano, Go, 2017. "How does anti-corruption affect corporate innovation? Evidence from recent anti-corruption efforts in China," Journal of Comparative Economics, Elsevier, vol. 45(3), pages 498-519.
    11. Bechlioulis, Alexandros & Economidou, Claire & Karamanis, Dimitrios & Konstantios, Dimitrios, 2023. "How important are capital controls in shaping innovation activity?," Journal of International Money and Finance, Elsevier, vol. 131(C).
    12. Nurullah Gur & Veysel Avşar, 2016. "Financial system, R&D intensity and comparative advantage," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(2), pages 213-239, March.
    13. Du, Minzhe & Liu, Yunxiao & Wang, Bing & Lee, Myunghun & Zhang, Ning, 2021. "The sources of regulated productivity in Chinese power plants: An estimation of the restricted cost function combined with DEA approach," Energy Economics, Elsevier, vol. 100(C).
    14. Agénor, Pierre-Richard & Canuto, Otaviano, 2017. "Access to finance, product innovation and middle-income traps," Research in Economics, Elsevier, vol. 71(2), pages 337-355.
    15. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.
    16. Gehringer, Agnieszka, 2015. "Uneven effects of financial liberalization on productivity growth in the EU: Evidence from a dynamic panel investigation," International Journal of Production Economics, Elsevier, vol. 159(C), pages 334-346.
    17. Filippo Mezzanotti & Timothy Simcoe, 2023. "Research and/or Development? Financial Frictions and Innovation Investment," Working Papers 23-39, Center for Economic Studies, U.S. Census Bureau.
    18. Carlo Altomonte & Domenico Favoino & Monica Morlacco & Tommaso Sonno, 2021. "Markups, intangible capital and heterogeneous financial frictions," CEP Discussion Papers dp1740, Centre for Economic Performance, LSE.
    19. Xie, Rui & Fu, Wei & Yao, Siling & Zhang, Qi, 2021. "Effects of financial agglomeration on green total factor productivity in Chinese cities: Insights from an empirical spatial Durbin model," Energy Economics, Elsevier, vol. 101(C).
    20. Xie, Rong-hui & Yuan, Yi-jun & Huang, Jing-jing, 2017. "Different Types of Environmental Regulations and Heterogeneous Influence on “Green” Productivity: Evidence from China," Ecological Economics, Elsevier, vol. 132(C), pages 104-112.

    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:spr:soinre:v:154:y:2021:i:2:d:10.1007_s11205-020-02576-5. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.