The impact of environmental regulation on urban green output efficiency: evidence from China

Since the reform and opening up, China has achieved rapid economic development at the cost of environmental pollution, but this extensive development mode is increasingly difficult to sustain. Fortunately, China has begun to attach importance to environmental pollution and green output, and the central and local governments have successively issued many environmental regulation policies. Taking 285 prefecture-level cities in China from 2003 to 2017 as samples, this paper uses slacks-based measure (SBM) model based on unexpected output to measure the green output efficiency. Taking green output efficiency as the explanatory variable and environmental regulation as the explanatory variable, this paper analyzes its local effect and neighboring effect. The regression results of the whole sample show that environmental regulation in China will have a positive impact on green output efficiency, but it will have a negative impact on neighboring cities. Furthermore, considering the differences of economic development levels among the eastern, central and western regions of China, the samples of the three regions were regressed, and it was found that the higher the economic development level, the greater the impact of environmental regulation on the regions. Therefore, cities should not only ensure their own characteristics, but also pay attention to policy coordination among cities when formulating relevant environmental regulation policies.