Measuring green economic growth in eastern China: influencing factors and policy perspectives

Abstract

Abstract China’s green growth reflects a strategic shift to balance rapid economic development with environmental sustainability. It emphasizes improving resource efficiency, reducing pollution, and promoting clean energy and green technological innovation to achieve long-term benefits for both ecology and the economy. This study examines the nuances of green economic growth in eastern China, aiming to address the challenges posed by rapid industrialization and the need for environmental sustainability. The study aims to identify factors influencing green economic development and propose strategies to align economic growth with ecological balance. An evaluation index system has been established for industries’ green growth, resource and environmental sustaining function, and government policy support. This study employs the entropy-weight method to construct the Green Economy Index for the Eastern China region. It uses multiple estimators such as Common Correlated Effects Mean Group (CCEMG), Augmented Mean Group (AMG), Mean Group (MG), and Common Correlated Effects Pooled (CCEP) models to examine key driving factors such as GDP growth, industrial restructuring, urbanization, foreign direct investment, and technological innovation. The results indicate that, driven by policy reforms, industrial restructuring, and urbanization, the green economy in the eastern region has experienced a compound annual growth rate of 10.11% between 2004 and 2021. This study emphasizes the importance of implementing targeted policies, including promoting industrial transfer, enforcing stricter environmental regulations, enhancing technological advancements, optimizing resource utilization, and promoting coordinated regional development.

Keywords

• Green economy index
• Cross-sectional dependency
• Entropy weight method
• Panel cointegration
• Policy effectiveness