Does business environment optimization improve carbon emission efficiency? Evidence from provincial panel data in...

Area of Science:

• Environmental Science
• Economics
• Public Policy

Background:

• Mixed conclusions exist on business environment (BE) optimization's impact on carbon emission efficiency (CEE).
• Understanding the mechanisms and heterogeneity of this relationship is crucial for sustainable development.

Purpose of the Study:

• To investigate the impact of business environment (BE) optimization on carbon emission efficiency (CEE) in China.
• To explore the mediating mechanisms and heterogeneity of the BE-CEE relationship.

Main Methods:

• Panel data from 30 Chinese provinces.
• Fixed effect, quantile, and mediated effect models were employed.
• Heterogeneity analysis considered governance, governor age, and education.

Main Results:

• BE optimization significantly enhances CEE, with diminishing marginal effects.
• Mechanisms include industrial structure optimization and green technology progress, counteracted by the energy rebound effect.
• Impact is stronger in provinces with robust governance, younger governors, and higher official education.

Conclusions:

• Continuous BE optimization is vital for improving CEE.
• Enhancing government governance and appointing younger, educated officials can amplify positive impacts.
• Policy should address the energy rebound effect to maximize efficiency gains.