In this study, we examine the promotion of eco-efficiency from a novel perspective by analyzing whether a city's environmental image contributes to its eco-efficiency. Specifically, we examine the causal effect of the country-level garden city image (CGCI) program on eco-efficiency by using a data set of Chinese prefecture-level cities from 2005 to 2016. We estimate the effects of this program by combining propensity score matching with the difference-in-differences method. Results show the program significantly increases a city's eco-efficiency by expanding its urban green coverage, optimizing its industrial structure, and attracting talented inhabitants. The CGCI certification effects are heterogeneous. Specifically, while its effects in the western regions are positive, its effects in eastern developed cities are insignificant. These results generally point toward the effectiveness and efficiency of the CGCI program in increasing eco-efficiency.
Keywords: Causal effect; Difference-in-differences; Eco-efficiency; Environmental image; Environmental incentive policy.
© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.