An Empirical Study on the Impact of Environmental Policies on Green Total Factor Productivity of Manufacturing Industry in China

Based on the concept of green development, resource and environmental factors are incorporated into the traditional analysis framework of total factor productivity. The SBM-GML model is employed to measure the green total factor productivity and its decomposition value of the manufacturing industry using the panel data of 27 manufacturing sub-sectors in China from 2016 to 2020. Then to investigate the nonlinear relationship between environmental policy and green total factor productivity, linear and nonlinear panel data models are built. Based on empirical analysis, the subsequent conclusions have been drawn: the overall green total factor productivity of China’s manufacturing industry is at an upward level, and there is a clear stage in the sample range, with gentle fluctuations in the initial period and gradually increasing fluctuations in the later stage. Furthermore, there are obvious industry differences in the growth of GTFP in the manufacturing industry. Finally, there are different nonlinear relationships between heterogeneous environmental policy instruments and green total factor productivity.