Impact of green economy efficiency on sustainable development: evidence from China

Increasing number of nations are moving to a green economy as a vital avenue to accomplish the objective of sustainable development, and China has made a mark among those countries. This study evaluated green economy efficiency (GEE) using the super slack-based measure (Super-SBM) model and empirically investigated the relationship between GEE and sustainable development (SD) using the mediation effect econometric model. The examination of this article led to the following results: (1) As China’s growth method was completing the transition of old and new drivers, its GEE and SD were both demonstrating a fluctuating increasing trend. (2) The influence of GEE on SD was nonlinear and exhibited an inverted U-shape, with moderate GEE encouraging SD and excessive GEE limiting SD. (3) The industrial structure upgrading (ISU) indicator had a substantial mediating role in the process of GEE influencing SD, where an increase in GEE improved ISU, which in turn promoted SD. Therefore, for improved SD, we need to comprehend the scale not to mindlessly pursue GEE, and should stress the function of ISU. Our results give vital insight for understanding the link between GEE and SD.