This observational analysis reveals a U-shaped relationship between environmental regulation and industrial green total factor productivity in China, indicating decentralization's moderating role.
This study examines the relationship between environmental regulation, decentralization, and industrial green total factor productivity (IGTFP) in China, based on data from 30 provinces (2008–2022). Findings demonstrate a "U-shaped" effect of environmental regulation on IGTFP. Decentralization reduces this positive effect. Regional heterogeneity is evident: the impact is strongest in central and western regions, but less pronounced in the east due to technological saturation and in the northeast due to weak regulatory enforcement. The study suggests establishing a differentiated environmental regulation framework, optimizing environmental decentralization mechanisms, and enhancing digital environmental governance platforms
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Li et al. (2025) studied this question.
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