Environmental governance’s effect on green total factor productivity in the Yangtze River Economic Belt, China

The Yangtze River Economic Belt is a national strategy target in China, but there is a relative lack of empirical research concerning its development goals for green and high-quality development. Based on the SBM-undesirable and the GML index, this study, first, measures the green total factor productivity (GTFP) of provincial jurisdictions in the Yangtze River Economic Belt, and explores its evolution. Overall, the provincial jurisdictions in the Yangtze River Economic Belt (YREB) have made progress in GTFP, with technological progress having contributed much more than the technical efficiency. The GTFP values between upstream, midstream and downstream varies large, showing greater volatility in terms of the time dimension. Then, with benchmark and threshold models, this study tests the relationship between provincial environmental governance and GTFP in the YREB. Empirical tests with panel data from provincial jurisdictions indicate a significant positive U-shaped relationship between them. The environmental governance intensity initially suppresses the GTFP enhancement, but after reaching a certain point, promotes it. Also, in reference to the nationwide samples, the GTFP values are decomposed to observe its drivers, and in the empirical estimations whether this nationally pilot zone have achieved green and high-quality development is weighed. Accordingly, this study makes relevant suggestions for improving GTFP.