A road map for environmental sustainability and green economic development: an empirical study

In today's era, the world economy needs to move towards a green transformation. Green total factor productivity provides the judgment about a country or region's ability to achieve long-term sustainable development goals. However, many factors considerably affect green total factor productivity that needs to be explored and clarified. This panel study investigates the link between technological input, environmental policies, governmental involvement, manufacturing and logistics industry cooperation, renewable energy consumption, and green total factor productivity in the context of Chinese's manufacturing and logistics industry. Hypotheses are tested through fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) econometric technique. The study used 12 cities data mainly taken from China Urban Statistical Yearbook (2005-2019) and National Economic and Social Development Statistics Bulletin. The results indicate that technological input, environmental policies, governmental involvement, manufacturing and logistics industry cooperation, and renewable energy consumption are significantly linked to green total factor productivity. The result also implies that the factors mentioned above have a crucial role in the transformation process. Moreover, the current research results will help popularize green total factor productivity and provide a new starting point for reducing non-renewable energy consumption and environmental pollution.