The Assessment of Green Business Environments Using the Environmental–Economic Index: The Case of China

Cheng-Wen Lee (), Chin-Chuan Wang, Hui-Hsin Hsu and Peiyi Kong
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Cheng-Wen Lee: Department of International Business, Chung Yuan Christian University, Taoyuan 320, Taiwan
Chin-Chuan Wang: Ph.D. Program in Business, College of Business, Chung Yuan Christian University, Taoyuan 320, Taiwan
Hui-Hsin Hsu: Ph.D. Program in Business, College of Business, Chung Yuan Christian University, Taoyuan 320, Taiwan
Peiyi Kong: School of Economics and Management, Xiamen Nanyang University, Xiamen 361012, China

Sustainability, 2023, vol. 15, issue 23, 1-17

Abstract: The quality of a country’s business environment speaks volumes about its government’s capacity and competitiveness. Unfortunately, the current system only evaluates countries and cities, overlooking the business environments of individual provinces. To address this issue, this study utilizes a green and sustainable development approach to evaluate the business environments of 30 provinces/municipalities in China. By incorporating ecological and environmental protection and sustainable development indicators, a novel green business environment index is constructed and analyzed to determine its impact on macroeconomic sustainable development and micro-enterprise operation. Taking into account the business environment index established by the World Bank and other organizations, this evaluation system adds ecological and environmental indicators specific to each province/municipality in China from the year 2011 to 2020. The result is a provincial green business environment evaluation index system consisting of 5 primary indicators and 30 secondary indicators. Principal component analysis (PCA) is then applied to rank the green business environment for each province/municipality. Furthermore, the overall green business environment of the Eastern region is superior to that of the Central and Western regions, highlighting the uneven development of the business environment in China.

Keywords: green business environment; sustainable economic development; Spatial Dubin Model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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