Green standard and green development: Theory and empirical evidence

This study uses panel data from China spanning from 1999 to 2019 to construct the green standard development index and the green development index using Principal Component Analysis and Entropy Method. The double fixed effect model examines the positive impact of green standards on green development and its heterogeneity. Then, the global Moran index and spatial Durbin model investigate spatial correlation and spillover effects. The results show that green standards have a positive influence on green development, particularly in terms of promoting green production and living. The influence of green standards on green development shows a decreasing trend from east, west and central regions. Both mandatory and recommended green standards have a positive impact on green development. Mandatory green standards have a positive impact on green production and living, but have a negative effect on green economy, while recommended green standards have no significant impact on production, living, and green economy. Furthermore, green standards promote green development by facilitating the diffusion of green innovation. In addition, both green development and green standards exhibit strong spatial autocorrelation. The positive spatial spillover effect of green standards on green development is greater than its direct effect.