Rent-seeking, promotion pressure and green economic efficiency: Evidence from China

Li Wang, Yuhui Shao, Youxia Sun and Yanan Wang

Economic Systems, 2023, vol. 47, issue 1

Abstract: Focusing on the quality and sustainability of urban economic development and using a panel dataset of 263 cities in China from 2004 to 2015, this paper regards each city as a production unit and uses the Epsilon-Based Measure approach to measure green economic efficiency by innovatively regarding labor, capital, land and energy as input factors, GDP as a desirable output, and environmental pollution emissions and land finance as undesirable outputs. Further, this paper examines the effect of rent-seeking on green economic efficiency with a fixed effects model and explores the role of promotion pressure in the relationship between rent-seeking and green economic efficiency with a panel threshold model. Our study finds that: (1) Rent-seeking exerts a significant negative impact on green economic efficiency. (2) Compared to areas of higher promotion pressure, the negative effect of rent-seeking on green economic efficiency is greater in areas facing lower promotion pressure. (3) The relationship among promotion pressure, rent-seeking and green economic efficiency differs in areas facing different “green” promotion pressure.

Keywords: Rent-seeking; Promotion pressure; Green economic efficiency (search for similar items in EconPapers)
JEL-codes: H11 Q56 R11 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:47:y:2023:i:1:s0939362522000735

DOI: 10.1016/j.ecosys.2022.101011

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