Does Private Economy Promote Green Development Of China?

Since the reform and open,China’s economic development has made remarkable achievements and created a "Chinese economical miracle",of which the private economy has made great contributions.At the same time,China’s environmental pollution problem has begun to highlight.The emissions of pollutants such as SO2,fine particles,wastewater and CO2 are increasing,making the environmental pressure constantly growing.The following question is whether the development of private economy is conducive to(or not conducive to)ecological environment protection? Why is it conducive to(or not conducive to)ecological environment protection? For the above questions,the existing literature has not reached a unanimous conclusion.Based on this,considering the existing research results,this paper further studies the impact of private economy on green TFP,and discusses the mechanism of private economy affecting green development.Based on China’s provincial panel data from 2005 to 2017,this paper uses Super-SBM model and GML index to calculate the value of green TFP.Combined with the measurement of indicators of private economy,this paper uses econometric analysis method to test the influence and mechanism of private economy on green TFP.Specifically,this paper constructs the research framework of "overall impact & action mechanism & transmission path",and combs the relationship between private economy and green TFP in detail.This paper tests the overall impact direction of private economy on green TFP,the action mechanism based on the decomposition of green TFP,and the transmission path composed of the influencing factors of green TFP.As a deepening innovation in the cross field of institutional economics and environmental economics,this paper fills the relevant research gap to a certain extent and enriches the research framework in this direction.The empirical results show that: first,at the national level,the private economy has a significant positive impact on green TFP.Every 1% increase in the proportion of private economy can drive the growth of green TFP by 0.065%.Considering the potential endogeneity of the regression model,the result is still robust.Second,the private economy promotes the growth of green TFP by promoting technological change and technical efficiency change.The increase of the proportion of private economy has a significant positive impact on both regional technological change and technical efficiency change.Third,innovation,environmental regulation and industrial structure change are the three specific transmission channels for the influence of private economy on green TFP.The rising proportion of private economy has a positive effect on all three of innovation,environmental regulation and industrial structure change,which in turn promote the growth of green TFP.Fourth,the private economy has also improved the contribution rate of green TFP to economic growth,making green TFP become the leading force of economic development,so as to promote the transformation of China’s economic development mode.The research perspective and conclusion of this paper expand the research on the relationship between private economy and green development,thus possing important theoretical and practical value.It not only enriches the content of relevant research fields,but also provides a scientific basis for the relevant policy designation of Chinese government.