Modeling the role of environmental regulations in regional green economy efficiency of China: Empirical evidence from super efficiency DEA-Tobit model

Abstract

This paper used the panel data of various regions in China from 2007 to 2018 and constructs a green economic efficiency measurement index system. Following this, the super-efficient DEA model has been employed to measure the efficiency of China's green economy. Then, the Tobit model is used to verify the environmental regulation influence on efficiency of China's regional green economy extent and direction. The results show that: (1) in 2007-2018, the green economy efficiency level of China's eastern, central and western regions is on the rise, accompanied by more obvious spatial differences. The green economy efficiency basically shows the spatial differentiation characteristics of the highest in the eastern region and the lowest in the western region. (2) From the national perspective, environmental regulation influence on efficiency of green economy presents a "U" shaped curve that promotes and then suppresses. At the eastern and national levels, environmental regulation has the same characteristics for green economy efficiency, and both exhibit U-shaped curve characteristics. Whereas, in the central and western regions shows negative correlation. (3) From the perspective of control variables, there are significant differences in variables at the national and regional levels. Finally, the study concludes with some policy suggestion for future green development and the formulation of environmental regulations in China.