Assessing the impact of economic growth target constraints on environmental pollution: Does environmental decentralization matter?

In the context of the goal of "carbon neutrality", an economic development model that achieves emission reduction goals and ensures stable economic growth is currently being advocated by China. Based on provincial panel data in China from 2005 to 2016, we analyse the impact of economic growth target (EGT) constraints on environmental pollution using a spatial econometric method. The results indicate that EGT constraints significantly exacerbate environmental pollution in local regions and adjacent areas. Local governments are motivated to achieve economic growth goals at the expense of the ecological environment. The positive effects are attributed to a reduction in environmental regulation (ER), industrial structure upgrading and technological innovation and an increase in foreign direct investment (FDI). Moreover, environmental decentralization (ED) plays a positive regulatory role and can weaken the adverse influences of EGT constraints on environmental pollution. Interestingly, the nonlinear impact of EGT constraints on environmental pollution relies on different types of ED. Environmental administration decentralization (EDA) and environmental supervision decentralization (EDS) can reduce the positive effect of EGT constraints on environmental pollution, while an improvement in environmental monitoring decentralization (EDM) can increase the promoting influences of the constraints of economic growth goals on environmental pollution. The above conclusions still hold under a series of robustness tests. Based on the above findings, we suggest that local governments set scientific growth targets, establish scientific assessment indicators for officials, and optimize the ED management institution.

Does economic growth target constraint put pressure on green energy efficiency? Evidence from China.

Building a sustainable energy system and achieving sustainable economic growth has always been China's development goal. However, under the promotion incentive and information asymmetry, local governments may choose to sacrifice the ecological environment to maintain expected economic growth goals. This paper analyzes the relationship between economic growth targets and green energy efficiency (GEE) by using panel data models and spatial econometric techniques. Moreover, the mediation effect model and threshold effect model are used to study their influence mechanism and the possible nonlinear relationship. The results indicate that economic growth targets reduce the efficiency of GEE. The impact of environmental regulation on GEE is "U" shaped. Environmental regulation plays a positive moderation role between economic growth targets and GEE. Additionally, higher levels of technological innovation, industrial upgrading, and environmental regulation result in a reduction in the negative effects of economic growth targets on the GEE. However, the improvement in the foreign direct investment can increase the negative influences of economic growth targets on the GEE.