The impact of environmental regulation on green total factor productivity: Evidence from China's provincial level

In the context of the 'dual carbon' goals, formulating reasonable environmental regulatory measures is of practical significance for enhancing GTFP and promoting green economic development. This study employs a fixed-effects model to elucidate the relationship between ER and GTFP. The research findings indicate that ER has a positive effect on GTFP. Heterogeneity analysis reveals that ER significantly promotes improvements in GTFP in both the eastern and western regions. Moreover, from 2015 to 2021, ER significantly enhanced GTFP, with VER exhibiting the strongest effect. Additionally, the positive impact of ER on GTFP is more pronounced in economically affluent regions than in less economically advanced ones. Mechanism analysis further reveals that both the structure of energy consumption and industrial structure upgrading are important mechanisms through which ER affects GTFP. Furthermore, digital industrialization applications and the integration of industrial digitalization significantly amplify the impact of ER on GTFP. Based on these findings, we propose recommendations for improving the ER system by fully leveraging institutional norms, appropriately utilizing market-based guidance, and strengthening social supervision.