Does environmental decentralisation affect industry green economy efficiency?The Moderating Effect of the Institutional Environment

Based on the SBM-GML model, the green total factor productivity (TFP) of agriculture, industry and service industry is measured based on the provincial panel data of China from 2003 to 2022, and the scientific spatial econometric method is used to comprehensively assess the impact and moderating effect of the environmental decentralisation on the green TFP of the industries in China. The study confirms that the relationship between environmental decentralisation and industry green total factor productivity is generally inverted "U" shape. It is further found that the effect of environmental decentralisation on industry green TFP is consistent with the overall effect in the central region, while in the eastern region the relationship is "U" shaped, and in the western region it is not obvious. The institutional environment is an important moderator of the impact of environmental decentralisation on industry green TFP, which is reflected in the government-market relationship, the development of non-state economy, the development of market intermediary organisations and the legal environment. This paper provides ideas for a deeper understanding of "environmental decentralisation" and its impact on the industry.