Economic policy uncertainty and green economy efficiency: power or resistance?—Empirical evidence from Chinese major urban agglomerations. Issue 1 (31st December 2022)

• Record Type: Journal Article
• Authors: Ma, Junwei; Wang, Jianhua; Shen, Xiangdong
• Is Part Of: Ekonomska istraživanja. Volume 35:Issue 1(2022)
• Page Start: 657
• Page End: 675
• Publication Date: 2022-12-31
• Subjects: Economic policy uncertainty -- green economic efficiency -- green total factor productivity -- urban agglomeration; O13 -- O18 -- Q56; Economics -- Research -- Periodicals; Economics -- Research; Electronic journals; 330.072
• DOI: 10.1080/1331677X.2021.1931911
• Languages: English
• ISSNs: 1331-677X

Abstract

Abstract: Policy uncertainties have always played a critical role in shaping economic outcomes, as evidenced by the recent sluggish economic growth in many countries. Green economic efficiency (GEE) is a comprehensive index to measure economic, social, and environmental development. This paper uses the slack-based measurement (SBM) directional distance function and Luenberger productivity indicator to measure the static GEE and dynamic green total factor productivity (GTFP) of China's urban agglomerations from 2003 to 2020 under constraints of resources and environment. In order to clarify the driving mechanisms of GEE and GTFP, this paper adds the factor of economic policy uncertainty (EPU). The results show that there is a positive correlation between EPU with GEE and GTFP. The possible reason is that the market mechanism plays a decisive role in improved GEE and GTFP. Therefore, policymakers should give better play to the government's macro-control role, and play the decisive role of the market mechanism in the environmental governance system to improve GEE and GTFP in a targeted manner.