Influence of healthy human capital and environmental regulation on green total factor productivity in China

Abstract

Environment affects the health of residents; to promote high‐quality economic development, their combined effect is crucial in measuring green total factor productivity (GTFP). Yet, scholars seldom consider the regulatory effect of the environment, spillover effect of healthy human capital, and synergistic effect between the environment and the health of residents. Using the panel threshold model and spatial Durbin model, along with the measurement of inter‐provincial GTFP from 2011 to 2019, we examine the effect of environmental regulation, healthy human capital, and their synergistic effect on the development of the green economy in China. The results reveal that environmental regulation inhibits the improvement of GTFP, whereas healthy human capital and interaction items promote the improvement of GTFP. There exists a threshold effect of environmental regulation on the promoting effect of healthy human capital on the GTFP in China, in general, and inland areas in particular. Moreover, environmental regulation, healthy human capital, and interaction items have significant spatial spillover effects on the GTFP in provinces with similar economic attributes.

The Effect of Regulation and Market Competition on Green Total Factor Productivity in China’s Industry

“…They showed that command-and-control environmental regulation inhibited the growth of enterprise total factor productivity. Zheng and Chen [25] measured the interprovincial GTFP in China and showed that environmental regulation inhibited the increase in GTFP.…”