The impact of local government attention on green total factor productivity: An empirical study based on System GMM dynamic panel model

• Published in: Journal of cleaner production 2024-06, Vol.458, p.142275, Article 142275
• Main Authors: Zhang, Zhenhua, Hua, Ziyan, He, Zihui, Wei, Xin, Sun, Huaping
• Format: Article
• Language: English
• Subjects: Fiscal decentralization; Green technology innovation; Green total factor productivity; Local government attention; New quality productive forces
• ISSN: 0959-6526; 1879-1786
• DOI: 10.1016/j.jclepro.2024.142275

Investigating how the local government attention affects green total factor productivity (GTFP) might have a surprising effect on how to develop new quality productive forces. We use a System GMM dynamic panel model to assess how local government attention affects GTFP, with green technology innovation a the mediating variable and fiscal decentralization as the moderating variable, using data of Chinese cities from 2007 to 2020. The research findings demonstrate that local government attention can considerably increase GTFP in Chinese cities, with a significant time-lag effect, and the increase in GTFP in the time dimension is cumulative from year to year. The influence of local government attention on GTFP is heterogeneous among cities with different geographical locations, administrative levels, resource backgrounds and tourism development degrees. Local government attention can encourage green technology innovation, thus promoting GTFP. A moderating influence of fiscal decentralization is captured in the relationship between local government attention and GTFP. This paper concludes that the government should enhance the decision-making power of action, formulate differentiated and reasonable environmental regulations in different cities, strongly support the progress of green technology, and improve the local assessment mechanism, to promote the new quality productive forces. •Local government attention can significantly increase the GTFP, with a significant time-lag effect.•Local government attention impacts GTFP heterogeneously among different cities.•Green technology innovation mediates the effect of local government attention, and fiscal decentralization moderates it.