The Effects Of Market Segmentation On Green Economic Growth

Market segmentation is critical to regional economic development and has effects on energy consumption and pollution emissions in regional industrial production.Academic researches have investigated the impact of market segmentation on various economic indexes,but there is still few research on the impact of market segmentation on green economic growth.This paper attempts to construct a comprehensive analyzing framework that incorporates green economic growth index and market segmentation.Based on a panel data set of 30 provinces of China from 2005 to 2016,the dynamic panel system GMM method is used to empirically test the impact of commodity market segmentation on green economic growth.The results show that the segmentation of commodity markets has negative effects on green economic growth,over 70 percent of the effects come from market segmentation induced by non-geographic factors.To further test the results,we use a panel data set of 250 prefecture-level cities from 2006 to 2015 to conduct empirical tests.The results suggest that the opening of high-speed rail does not contribute to the improvement of green economic growth index.The mechanism may be the regional "tunnel effect"brought about by the improvement of transportation infrastructure,the opening of high-speed railway has weakened the natural market segmentation while widening the gaps among cities in the regional market,which in turn aggravated market segmentation,failing to improve green economic growth index.This paper suggests to remove institutional barriers in commodity and factor markets,strengthening regional market integration.Promote the design of high-speed railway projects,to the benefit of the positive impact of transportation infrastructure on green economic growth;reform the assessment system of local government officials,strengthen environmental supervision,stress more attention to the implementation of energy conservation and pollution reduction.