Environmental decentralization and green development: the mediating role of industrial upgrading.

Green development is a comprehensive concept incorporating environmental protection, playing a vital role in industrial upgrading and economic transformation. Under the current national status of political centralization and fiscal decentralization, decentralized environmental governance exerts a noticeable impact on green development (GTFP). The direct, mediating mechanism, and the spillover effects of environmental decentralization (ED) on GTFP are examined according to 30 Chinese areas dataset from 2005 to 2019. We reveal that a significant negative impact of ED on GTFP. The mediating effect of industrial upgrading is found during impact of ED on GTFP process. Furthermore, with the rising ED of surrounding areas, the GTFP of its region will be weakened. Meanwhile, an overall negative spillover effect of ED on the GTFP of neighboring areas is confirmed. ED in eastern and central China negatively impact GTFP, and such impact in the western area is insignificant. The spillover effects are also heterogeneous.