The Effect of Green Urbanization on Forestry Green Total Factor Productivity in China: Analysis from a Carbon Neutral Perspective

Abstract

Based on panel data from 30 provinces from 2001 to 2018 in China, this paper explores the effects and mechanisms of green urbanization on the forestry green total factor productivity (FGTFP) in the context of carbon neutral strategy using a two-way fixed effects model and instrumental variables. The results show that: Firstly, as a sector with ecological and economic benefits, ignoring carbon sink output tends to make FGTFP overestimated. Secondly, green urbanization has a significant positive contribution effect on FGTFP, and this finding still holds after a series of robustness tests including instrumental variables. Thirdly, green urbanization can indirectly promote FGTFP by stimulating the integration of forestry and tourism and strengthening environmental regulations. Fourthly, there is regional heterogeneity in the impact of green urbanization on FGTFP, i.e., the promotion effect of green urbanization on FGTFP is more significant in non-state forest areas compared with state-owned forest areas. Based on the above conclusions, the following countermeasures are proposed: firstly, attaching importance to green urbanization and strengthening environmental constraints; secondly, relying on green urbanization to drive the integration of forestry and tourism; thirdly, actively promoting the construction of green urbanization and green development of forestry in non-state forest areas, while vigorously developing the carbon sink economy to crack the transformation dilemma of backward state forest areas.