Construction of China’s Green Institutional Environmental Index: Using Functional Data Analysis method

Xiaolei Yang, Lingyun He (), Sihua Tian, Yufei Xia and Deqing Wang
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Xiaolei Yang: Wuhan University
Lingyun He: China University of Mining and Technology
Sihua Tian: China University of Mining and Technology
Yufei Xia: Jiangsu Normal University
Deqing Wang: China University of Mining and Technology

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2021, vol. 154, issue 2, No 8, 559-582

Abstract: Abstract This paper proposes the concept of green institutional environment, and constructs China’s green institutional environmental system from the three dimensions of green supervision and public institution, green standardized institution and green accounting institution. Based on the relevant data from 2007 to 2017, this paper simulates China’s green institutional environmental index through the Functional Data Analysis method and the functional entropy weight method. The results show that, first, there is a general upward trend in China’s green institutional environmental index, with a range of [0.2–0.8]; the minimum value of this index is 0, and there is no maximum value. The larger the value, the higher the level of green institutional environment. Second, at the present stage, China’s green standardized institution is relatively well-developed, accounting for the largest weight (i.e., [0.932–0.940]) in the green institutional environmental index system; the green accounting institution plays a supporting role, with a weight of [0.030–0.040], due to the fact that the Chinese government has made great efforts to implement policies at this level; the development of green supervision and public institution is under-developed and has little influence on the green institutional environmental index, with a weight of [0.0285–0.0305]. Finally, the proposed green institutional environmental index remains robust when equalizing the weights of the three dimensions.

Keywords: Green institutional environment; Functional data analysis method; Green standardized institution; Green accounting institution (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s11205-020-02576-5

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