Impact of capital market distortion on Chinese provincial carbon economy performance

This study selects the data of 30 provinces in the Chinese mainland (Tibet data is missing) as samples. The data, from 2011 to 2020, are used to measure the degree of capital market distortion (CMD) by using the C-D production function method. The regression analysis method is also used to empirically analyze the impact of CMD on provincial carbon economy performance (CEP). Finally, this study also examines the mediating role of industrial structure upgrading (ISU), as well as the moderating roles of government environmental support (GES) and public environmental concern (PEC). The results indicate that CMD negatively affects provincial CEP. In this process, ISU plays a partly intermediary role, and GES and PEC play weakening roles. The above conclusions still hold after a series of robustness tests. The study results are of great practical significance for accelerating China’s capital factor marketization reform, enhancing the efficiency of capital factor allocation, and then improving the provincial CEP.