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Market Segmentation and Green Development Performance: Evidence from Chinese Cities.

Xuebing Dong1, Benbo Liang1, Haichao Yu2

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Summary

Market segmentation in Chinese cities shows an inverted U-shaped relationship with green development performance. Industrial structure upgrading enhances green development, while market segmentation

Keywords:
dynamic spatial panel modelfactor price distortiongreen development performanceheterogeneity analysisindustrial structure upgradingmarket segmentation

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Area of Science:

  • Environmental Economics
  • Urban Studies
  • Regional Science

Background:

  • Green development performance is crucial for sustainable urban growth.
  • Market segmentation, often driven by local protectionism, can impede economic efficiency and environmental progress.
  • Understanding the interplay between market segmentation and green development is vital for effective policy-making in China.

Purpose of the Study:

  • To empirically investigate the non-linear relationship between market segmentation and green development performance in Chinese cities.
  • To examine the moderating effects of industrial structure upgrading and factor price distortion.
  • To analyze regional disparities and the impact on resource-based cities.

Main Methods:

  • Utilized 2006-2019 panel data from 282 Chinese cities.
  • Employed static panel, dynamic panel, and dynamic spatial panel models.
  • Analyzed the inverted U-shaped relationship and regional variations.

Main Results:

  • Green development performance exhibits significant temporal and spatial path dependence.
  • Market segmentation demonstrates a clear inverted U-shaped relationship with green development performance.
  • Industrial structure upgrading positively impacts green development, while factor price distortion has an inhibitory effect. Market segmentation and industrial structure upgrading also show an inverted U-shape relationship.
  • Regional analysis indicates an inverted U-shaped correlation across western, central, and eastern cities, with variations based on industrial development rates. Resource-based cities also exhibit this inverted U-shaped structure.

Conclusions:

  • Market segmentation, particularly due to local protectionism, influences green development performance non-linearly.
  • Policies promoting industrial structure upgrading are essential for enhancing green development.
  • Addressing factor price distortions and regional disparities in market segmentation is critical for achieving sustainable urban development.