Local Economic Autonomy and Enterprises’ Green Total Factor Productivity: A Policy Substitution Perspective

Global climate change and environmental degradation necessitate a transition toward sustainable economic development. The factors influencing green total factor productivity (GTFP), a crucial measure for sustainable economic growth, have garnered significant attention. This study investigates the i...

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Main Author: Long Wang
Format: Article
Language:English
Published: Ital Publication 2025-06-01
Series:HighTech and Innovation Journal
Subjects:
Online Access:https://hightechjournal.org/index.php/HIJ/article/view/1042
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author Long Wang
author_facet Long Wang
author_sort Long Wang
collection DOAJ
description Global climate change and environmental degradation necessitate a transition toward sustainable economic development. The factors influencing green total factor productivity (GTFP), a crucial measure for sustainable economic growth, have garnered significant attention. This study investigates the impact of local economic autonomy on enterprises’ GTFP in China, integrating both fiscal and environmental autonomy. Using panel data from 2008 to 2021, a generalized difference-in-differences (DID) model combined with the non-radial SBM-ML index measures GTFP. Findings indicate that while fiscal autonomy promotes GTFP, environmental autonomy hinders it, resulting in an overall negative effect of economic autonomy. A policy substitution effect emerges; wherein local governments prioritize environmental regulation over support for science and technology. Additionally, industrial structure upgrading plays a role in mitigating the negative impact of autonomy, offering empirical evidence relevant to sustainable development policies in transition economies.
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spelling doaj-art-23d492acdcdc421fad2790f30caacbd12025-08-20T02:49:01ZengItal PublicationHighTech and Innovation Journal2723-95352025-06-016210.28991/HIJ-2025-06-02-012Local Economic Autonomy and Enterprises’ Green Total Factor Productivity: A Policy Substitution PerspectiveLong Wang0https://orcid.org/0009-0007-8388-0216School of Economics and Management, Northwest University, Xi'an, 710127 Global climate change and environmental degradation necessitate a transition toward sustainable economic development. The factors influencing green total factor productivity (GTFP), a crucial measure for sustainable economic growth, have garnered significant attention. This study investigates the impact of local economic autonomy on enterprises’ GTFP in China, integrating both fiscal and environmental autonomy. Using panel data from 2008 to 2021, a generalized difference-in-differences (DID) model combined with the non-radial SBM-ML index measures GTFP. Findings indicate that while fiscal autonomy promotes GTFP, environmental autonomy hinders it, resulting in an overall negative effect of economic autonomy. A policy substitution effect emerges; wherein local governments prioritize environmental regulation over support for science and technology. Additionally, industrial structure upgrading plays a role in mitigating the negative impact of autonomy, offering empirical evidence relevant to sustainable development policies in transition economies. https://hightechjournal.org/index.php/HIJ/article/view/1042Local Economic AutonomyEnvironmental DecentralizationFiscal DecentralizationGeneralized Difference-In-Differences MethodGreen Total Factor Productivity
spellingShingle Long Wang
Local Economic Autonomy and Enterprises’ Green Total Factor Productivity: A Policy Substitution Perspective
HighTech and Innovation Journal
Local Economic Autonomy
Environmental Decentralization
Fiscal Decentralization
Generalized Difference-In-Differences Method
Green Total Factor Productivity
title Local Economic Autonomy and Enterprises’ Green Total Factor Productivity: A Policy Substitution Perspective
title_full Local Economic Autonomy and Enterprises’ Green Total Factor Productivity: A Policy Substitution Perspective
title_fullStr Local Economic Autonomy and Enterprises’ Green Total Factor Productivity: A Policy Substitution Perspective
title_full_unstemmed Local Economic Autonomy and Enterprises’ Green Total Factor Productivity: A Policy Substitution Perspective
title_short Local Economic Autonomy and Enterprises’ Green Total Factor Productivity: A Policy Substitution Perspective
title_sort local economic autonomy and enterprises green total factor productivity a policy substitution perspective
topic Local Economic Autonomy
Environmental Decentralization
Fiscal Decentralization
Generalized Difference-In-Differences Method
Green Total Factor Productivity
url https://hightechjournal.org/index.php/HIJ/article/view/1042
work_keys_str_mv AT longwang localeconomicautonomyandenterprisesgreentotalfactorproductivityapolicysubstitutionperspective