Does the efficiency of capital allocation have spatial carbon emission spillover effects?

Abstract

This study investigates the spatial spillover effects of capital allocative efficiency on carbon emissions across 29 Chinese regions from 2000 to 2017 using a spatial Durbin model. The findings indicate a significant positive spatial spillover effect of capital allocative efficiency on carbon emissions, with notable regional variations. Specifically, a significant positive correlation exists in the eastern region, no correlation exists in the central region, and a significant negative correlation exists in the western region. Notably, in 2000, the efficiency of capital allocation in Guangdong and Zhejiang negatively influenced carbon emissions, whereas no significant effects were observed in 2009 and 2017. Conversely, Chongqing demonstrated consistent negative spillover effects across all examined years. This study provides policy recommendations for enhancing capital allocative efficiency and advancing China's low-carbon economic development.