The Heterogeneous Impacts of Human Capital on Green Total Factor Productivity: Regional Diversity Perspective

Abstract

That human capital improves the efficiency of Green Total Factor Productivity has been established in research fields, but the heterogeneous effects of human capital on GTFP and its sustainable mechanisms are unclear. This study examines the effects of human capital accumulation, fiscal spending on education, and innovation on GTFP efficiency under spatial and temporal diversity. Employing panel data from 30 provinces from 2001 to 2018 in China, we analyzed the dynamic and static efficiency of GTFP in different regions by three-stage data envelopment analysis (DEA). The heterogeneous effects of human capital on GTFP were explored through Tobit regression. Results reveal that the average value of GTFP efficiency is an inverted U-shape and the presence of significant t geography differences. Human capital accumulation and fiscal spending on education have positive effects on GTFP efficiency; however, innovation negatively affects it. At the same time, marketization growth decreases the positive influence of human capital and education on GTFP efficiency. While, this effect was not observed regarding innovation, the implication of these results concerning the human capital heterogeneous effects of GTFP efficiency in a different geographic context. Establishing a fair and transparent system can reduce the endowments gap and effectively promote GTFP efficiency in developing countries.