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Rent-seeking, promotion pressure and green economic efficiency: Evidence from China

  • Li Wang
  • , Yuhui Shao*
  • , Youxia Sun
  • , Yanan Wang
  • *Corresponding author for this work
  • Peking University
  • East China Normal University
  • South China University of Technology

Research output: Contribution to journalArticlepeer-review

Abstract

Focusing on the quality and sustainability of urban economic development and using a panel dataset of 263 cities in China from 2004 to 2015, this paper regards each city as a production unit and uses the Epsilon-Based Measure approach to measure green economic efficiency by innovatively regarding labor, capital, land and energy as input factors, GDP as a desirable output, and environmental pollution emissions and land finance as undesirable outputs. Further, this paper examines the effect of rent-seeking on green economic efficiency with a fixed effects model and explores the role of promotion pressure in the relationship between rent-seeking and green economic efficiency with a panel threshold model. Our study finds that: (1) Rent-seeking exerts a significant negative impact on green economic efficiency. (2) Compared to areas of higher promotion pressure, the negative effect of rent-seeking on green economic efficiency is greater in areas facing lower promotion pressure. (3) The relationship among promotion pressure, rent-seeking and green economic efficiency differs in areas facing different “green” promotion pressure.

Original languageEnglish
Article number101011
JournalEconomic Systems
Volume47
Issue number1
DOIs
StatePublished - Mar 2023

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth
  2. SDG 11 - Sustainable Cities and Communities
    SDG 11 Sustainable Cities and Communities
  3. SDG 12 - Responsible Consumption and Production
    SDG 12 Responsible Consumption and Production

Keywords

  • Green economic efficiency
  • Promotion pressure
  • Rent-seeking

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