Can social source waste classification improve urban green total factor productivity?

Purpose The Chinese government has issued policies for the classification and recycling of social source waste, which have effectively promoted energy conservation, emission reduction in society and the efficiency of waste utilization, becoming a new driving force for cities to alleviate the “waste siege” and achieve sustainable green development goals. Green total factor productivity (GTFP) is a key indicator of green growth. This study aims to analyze the enhancement effect of the implementation of the social source waste classification policy on green growth, the mechanism of action and the impact mechanism quantitatively. It sets out to provide suggestions for future policymaking and waste recycling system enhancement based on research findings. Design/methodology/approach This study developed a multi-phase difference-in-differences model based on panel data from 263 prefecture-level cities in China from 2011 to 2020 to study the improvement effect and impact mechanism of implementing waste classification policies on regional GTFP. A heterogeneity analysis was conducted considering city size, regional differences and GTFP resource endowment. Findings Social source waste classification policies positively impacted GTFP and had a greater effect on extra-large and large cities, especially in the eastern region. The policies promote the improvement of GTFP through technological innovation, which is an important mechanism affecting GTFP. Originality/value This study innovatively assesses the economic and environmental benefits of social source waste classification policies quantitatively. Different from previous provincial research, it explores the effect of waste classification policies on urban GTFP from prefecture-level cities of different sizes, regional differences and resource endowments.