1. Introduction
In recent years, the Chinese government has increased its regulation of environmental issues related to air, water, and soil because of the advancement of pollution control efforts. Despite the substantial progress achieved in pollution control during the 13th and 14th Five-Year Plans, the potential for further emission reductions has diminished, while the financial and operational costs of environmental governance have escalated, resulting in a bottleneck in environmental management. In light of these challenges, there is an urgent need to implement more efficient policies and technological support to address the increasingly complex environmental challenges that have emerged. Concurrently, the conventional developmental paradigm, typified by elevated pollution and energy consumption, is no longer a viable option. In response, the government has proposed a “high-quality development” strategy based on five key principles: innovation, greenness, coordination, openness, and sharing. Furthermore, policies such as the “14th Five-Year Plan for Ecological and Environmental Protection” and the “Action Plan for Carbon Peaking and Carbon Neutrality” have been introduced to promote the coordinated development of the economy and the environment.
Fujian, a pivotal province situated along China’s southeastern coast, is a prime example of China’s broader national policies aimed at promoting high-quality development and achieving the decoupling of economic growth from environmental degradation. In 2023, Fujian’s GDP reached 5.44 trillion yuan, constituting 4.31% of the national total. The province has undergone a significant transformation from a manufacturing-based economy to a more service-oriented structure, with the tertiary sector now accounting for 49.99%, followed by the secondary sector at 44.09%, and the primary sector at 5.92%. This structural shift aligns with China’s broader goal of transitioning to a more sustainable, consumption-driven economy. Fujian’s strategic positioning within the “Belt and Road Initiative” and the Maritime Silk Road has fostered the development of traditional industries, such as electronics and machinery, and emerging sectors like information technology and environmental protection. This economic evolution is directly influenced by national policies promoting innovation, technological advancement, and sustainable development. Furthermore, Fujian has consistently demonstrated its commitment to environmental sustainability, achieving a forest coverage rate of 65.12% for 45 consecutive years, aligning with national environmental goals.
Moreover, Fujian’s proactive approach to environmental sustainability reflects the central government’s push for cleaner, greener industrial practices. Notably, the province has implemented ultra-low emission measures, including the phase-out of 90% of small coal-fired boilers, to improve air quality. These efforts have had significant results, with 98.5% of days across nine cities classified as having good air quality. This is a direct manifestation of the high-quality development strategy promoted by national policies prioritizing a balance between economic growth and environmental protection. Through its combination of economic transition, technological innovation, and environmental commitment, Fujian serves as a representative case for the broader trends and challenges of high-quality development and decoupling in China. The province’s ability to harmonize economic and ecological goals makes it an ideal region for examining the implementation and impacts of national policies, thus providing valuable insights into the feasibility and challenges of achieving regional-level sustainable development.
Although it may be assumed that an increase in pollution emissions would impede high-quality development, studies have confirmed this negative effect [
1,
2]. However, it has also been demonstrated that at specific stages of development, increased pollution emissions reflect increased resource consumption, which may facilitate improvements in industrialization and production efficiency, thus promoting high-quality economic development [
3]. Chen et al., 2024 [
4] examined the impact of high-quality development on economic growth and carbon emissions in 26 cities of the Yangtze River Delta. The findings indicate that promoting economic growth in regions with medium- or high-quality economic development exhibits a nonlinear relationship. Furthermore, high-quality development plays a pivotal role in reducing environmental pollution and carbon emissions. Nevertheless, the study did not elucidate how high-quality development specifically affects the decoupling effect of economic growth from pollution emissions. The extant literature has primarily concentrated on the impact of factors such as technological advancement and green development on economic growth or pollution emissions [
5,
6]. Although these studies have elucidated the role of certain components of high-quality development, they have yet to comprehensively answer how high-quality development influences pollution emissions and economic growth. Furthermore, the impact of high-quality development on the decoupling effect of economic growth and pollution emissions as well as the specific mechanism of action have not been sufficiently explored.
Considering the prevailing context, the present study investigated the factors influencing the decoupling effect between economic growth and pollution emissions, focusing on nine prefecture-level cities in Fujian Province. To achieve this, this study first employed the input–output analysis method to calculate the direct electricity consumption coefficients of various industries using the input–output table of Fujian Province. In addition, it combined data on industrial electricity consumption and electricity prices from January 2019 to June 2024 to calculate the total regional output. Further, a Tapio decoupling model was employed to construct a decoupling index utilizing the pollution emission data from these cities. Subsequently, this paper proposes a high-quality development index (HQDI) for each city. This index was developed utilizing the entropy method, incorporating industrial electricity consumption and business expansion data. Finally, this study empirically investigated the impact of the HQDI and its dimensions on the decoupling effect, revealing the mechanisms through which HQDI influences pollution decoupling. The results show that most observations achieved strong or weak decoupling, indicating significant progress in environmental governance. The empirical results suggest that HQDI positively influences decoupling effects, with innovation, openness, and sharing driving progress, while brown industries and SMEs capacity installation hinder these efforts. Moreover, extremely high temperatures have a notably negative impact, while increased market concentration contributes positively to decoupling.
This study makes several significant contributions, as outlined below. First, to address the dearth of monthly industry data, this study employed an innovative methodology that combines input–output tables and big data on electricity to estimate regional output and the scale of the digital economy. On the one hand, the input–output table elucidates the technical and economic interconnections between sectors. Conversely, as a “barometer” of economic activity, the big data on electric power directly correlate with both economic development and environmental sustainability. These data can reflect economic dynamics with greater precision and in real time, thereby compensating for the limitations of traditional data and enhancing insights into the dynamics of economic structure changes.
Secondly, by incorporating electricity consumption data, we can capture not only traditional economic growth indicators but also measure the activity of small and micro-enterprises, the structure of industries, the development of high-tech sectors, and the scale of digital industrialization. These factors are not typically available through conventional macroeconomic indicators and offer a more comprehensive view of high-quality development and innovation. Thus, these factors enhance our ability to understand the decoupling relationship between economic growth and pollution, which may be overlooked when relying solely on traditional measures such as GDP.
Thirdly, given that most research focuses on traditional macroeconomic factors such as energy consumption intensity, industrial structure, and population size, this study explored the dynamic relationship between economic growth and the decoupling of pollution emissions by refining industry-level data. The monthly year-on-year growth of pollution emissions and GDP were calculated using daily electricity consumption data and the Tapio model, eliminating seasonality and economic cycle effects and accurately capturing the influence of changes in industrial structure on the decoupling effect.
Fourthly, given the representative nature of Fujian Province with respect to economic and environmental governance, this study investigated the impact of HQDI on the decoupling effect at the prefecture level. This analysis reveals how high-quality development promotes the coordination of economy and environment, providing theoretical support and empirical evidence for other regions to achieve sustainable economic development.
Finally, the methodology proposed in this study applies to regions outside China with similar characteristics if relevant data, such as regional electricity consumption and price, are available. The core input–output analysis method, supported by global databases like EORA, WIOD, and EXIOBASE, can be utilized to extend this approach to other regions, contributing to the broader literature.
The remainder of this study is organized as follows.
Section 2 is the literature review, which provides an overview of the measurement of the decoupling effect, the measurement of HQDI, and the impact of HQDI on the decoupling effect and proposes the hypothesis.
Section 3 presents the empirical research design, including data and variable definitions, the measurement of key variables (including regional GDP, Tapio decoupling index, and HQDI), the descriptive statistics, and the model specification.
Section 4 presents the results and discussion, which analyzes the distribution of the decoupling status of nine prefecture-level cities and discusses the influence of HQDI and its sub-indicators on the decoupling effect. The final section summarizes the conclusions and offers an outlook on future research. The research framework of this study is shown in
Figure 1.
4. Results and Discussion
4.1. Decoupling State of Nine Cities
Figure 4 illustrates the distribution of the decoupling states across nine prefecture-level cities in Fujian Province from January 2020 to June 2024, highlighting significant regional disparities. Despite these differences, most cities exhibited strong decoupling (SD), with 174 out of 486 observations (35.80%), followed by weak decoupling (WD) with 80 observations (16.46%). These results suggest that most regions in Fujian have made notable progress in decoupling economic growth from pollution emissions.
Among the cities, Ningde, Zhangzhou, and Longyan showed the highest proportion of SD (24 observations each), reflecting a successful balance between economic growth and PM2.5 control. In contrast, Xiamen and Quanzhou reported lower SD proportions (15 and 13, respectively), likely due to a higher dependence on pollution-intensive economic activities. For WD, Fuzhou and Zhangzhou led with 13 and 11 observations, respectively, while Xiamen had the highest proportion (13) of extended connectivity (END), reflecting varied environment–economy dynamics across development stages.
Other decoupling states also displayed regional variation. Fuzhou and Quanzhou showed a higher prevalence of weak negative decoupling (WND), suggesting more pronounced pollution increases alongside economic growth. Meanwhile, Sanming, Longyan, and Nanping exhibited higher rates of relative decoupling (RD) and strong negative decoupling (SND), indicating continued reliance on pollution-intensive economic activities. Overall, these findings highlight the diverse challenges and complexities faced by Fujian’s cities in achieving sustainable decoupling of economic growth from environmental degradation.
4.2. Impact of HQDI on the Decoupling of Economic Growth from Air Pollution
Table 4 presents the impact of HQDI on the decoupling of economic growth and PM
2.5 emissions. A stepwise regression approach is shown, beginning with HQDI alone in column (1) and progressively adding control variables such as extreme high-temperature days and the Herfindahl–Hirschman index (HHI) in columns (2) and (3). All models control for industry and year fixed effects. The results consistently demonstrate a significant positive effect of HQDI on the decoupling effect, even after the inclusion of controls. This supports Hypothesis 1 of this study that high-quality development contributes to achieving the decoupling effects.
In column (3), the benchmark results show that a 1% increase in HQDI increases the likelihood of achieving decoupling between economic growth and PM2.5 by 26%, highlighting both statistical and economic significance. Specifically, compared with the average likelihood of decoupling of 0.52, this 26% increase equates to 50% higher odds of achieving decoupling, signaling a considerable shift toward more sustainable economic growth. For policymakers, these findings suggest that implementing strategies to enhance HQDI, such as investing in innovation and green industries, can significantly accelerate decoupling, resulting in more sustainable economic development. Industry stakeholders can note that aligning their business models with environmental sustainability goals contributes to reducing pollution and positions them to better meet future regulatory requirements and maintain long-term competitiveness.
The regression coefficients for the control variables reveal additional insights. Extreme high temperatures can negatively impact decoupling because they often lead to increased energy demand, particularly for cooling, which can strain energy systems and exacerbate environmental pollution. These weather extremes tend to heighten reliance on energy-intensive industries, especially in regions where cooling technologies are still largely dependent on non-renewable energy sources. This added strain makes it more challenging to decouple economic growth and pollution emissions, as it could increase energy consumption and pollution during peak temperature periods.
Conversely, the increased market concentration (HHI) can foster decoupling because larger, more concentrated industries often have more resources to invest in energy-efficient technologies and adopt environmentally friendly practices. In such industries, the potential for economies of scale may lead to more effective implementation of green technologies and stricter adherence to environmental regulations, thus reducing pollution intensity. The higher the market concentration, the more these firms can leverage innovations and technological advancements that contribute to decoupling economic growth from pollution.
4.3. Instrumental Variable Analysis of the Impact of HQDI on the Decoupling of Economic Growth from Air Pollution
As we found, HQDI can increase the likelihood that cities will achieve a decoupling state. However, it is necessary to discuss the validity of the adopted econometric model. The econometric model presented in this paper Equation (8) may be subject to two potential issues. First, due to difficulties obtaining specific monthly economic indicators for prefecture-level cities, such as energy consumption structure, industrial structure, and policy variables, both the HQDI and decoupling effects could be influenced simultaneously. As a result, endogeneity problems may arise from the omitted variables. To address this, we control for both year and city fixed effects, which helps mitigate the impact of omitted variable bias on our estimation results.
Second, while HQDI influences the decoupling effect, the decoupling effect itself captures an optimal state where economic growth occurs alongside reduced pollution emissions. This relationship may, in turn, affect HQDI, potentially leading to reverse causality and endogeneity concerns. To mitigate these concerns, we adopted instrumental variables, specifically the lagged term of the HQDI and the average HQDI of cities other than the focal city, as commonly practiced in the literature. The rationale for utilizing two instrumental variables is that when there is only one endogenous variable, the exogeneity of the instrumental variables can be tested using the Hansen J statistic. The results of the instrumental variable regression are presented in
Table 5.
The results in
Table 5 suggest that the two instrumental variables significantly affect HQDI in the first stage at the 1% confidence level. Moreover, the Kleibergen–Paap rk Wald F statistic is 102.229, well above 10, indicating no issue of a weak instrumental variable. In the second stage, the
p-value of the Hansen J statistic is 0.388, indicating that we cannot reject the null hypothesis of exogeneity for all instrumental variables, confirming their relevance and exogeneity. Regarding the regression coefficients, the impact of HQDI on decoupling from PM
2.5 remains significantly positive at the 1% level, confirming the robustness of our results. The HQDI coefficient of 0.479 is 1.86 times higher than the benchmark regression value of 0.258, suggesting that potential endogeneity may lead to an underestimation of HQDI’s effect on decoupling. This underestimation is within an acceptable range, further supporting the robustness of our findings.
4.4. Robustness Test of the Impact of HQDI on the Decoupling of Economic Growth from Air Pollution
4.4.1. Robustness Test: Explained Variable Replacement, Outlier Removal, Model Adjustment, and Control Variable Modification
To verify the robustness of the benchmark results, this study conducted several robustness tests, including replacing the explained variable, involving outlier removal, adjusting the econometric model, and modifying the control variables. First, we redefined the decoupling from SO
2 and decoupling from PM
10 to reveal whether the impact of HQDI on the decoupling effect from different pollutants still held. The results are shown in columns (1) and (2) of
Table 6. Second, to ensure the prediction method did not bias the results, Zhangzhou was excluded from the analysis due to significant gaps in its pollution emission data, which were estimated using data from other cities and local temperature information in the baseline analysis; the results are reported in column (3) of
Table 6. Third, given that the explanatory variables are binary indicators of strong or weak decoupling between economic growth and pollution emissions, a probit model was adopted to assess whether the findings are sensitive to the choice of regression model. The results of this analysis are presented in column (4) of
Table 6. Then, the measurement of industry concentration was replaced with the market share percentage of the top four industries to provide a more precise representation of regional industry concentration, as shown in column (5) of
Table 6. Finally, we added nonlinear research into HQDI on the decoupling effect, as shown in column (6) of
Table 6.
The results in the first two columns in
Table 6 suggest that HQDI positively impacts the decoupling from SO
2 and PM
10 at the 1% confidence level, confirming the robustness of HQDI on the decoupling effect from different pollutants. Moreover, the magnitude of coefficients reveals that a 1% increase in HQDI can increase the probabilities of decoupling from SO
2 and PM
10 by 44% and 42%, respectively. These findings underscore the role of HQDI in promoting sustainable development driven by innovation, green development, and technological progress. Fujian Province has actively embraced high-quality development principles, adjusting its industrial and energy structures to support decoupling efforts. Moreover, the results in columns (3)–(5) in
Table 6 indicate that HQDI has a significant positive impact on the decoupling effect of PM
2.5 at the 1% confidence level, thereby validating the reliability of the benchmark findings.
4.4.2. Robustness Test: Sensitivity Analysis of Extreme High Temperature
In the benchmark regression, we defined extreme high-temperature days as the total number of days per month with a maximum temperature of 30 °C or higher. This definition assumes that when temperatures exceed 30 °C, industrial equipment consumes additional energy for cooling, leading to higher overall energy consumption, which could influence the decoupling effect. The results indeed show that an increase in extreme high-temperature days reduces the decoupling effect between economic growth and pollution emissions. However, due to the difficulty in defining a precise threshold for extreme high temperatures, we conducted a robustness check by redefining extreme high-temperature days as those between 28 °C and 35 °C. The results are presented in
Table 7.
The results of this robustness test, shown in
Table 7, reveal that even with this modified definition, HQDI continues to significantly increase the decoupling effect. Additionally, the negative impacts of extreme high-temperature days and the Herfindahl–Hirschman index on decoupling remain statistically significant, consistent with the benchmark results. This sensitivity analysis indicates that the conclusions drawn in this study are robust and not sensitive to the specific choice of extreme high-temperature threshold. Regardless of how extreme high-temperature days are defined, HQDI has a robust and positive effect on decoupling, while extreme temperatures remain a significant factor hindering the decoupling of economic growth and pollution emissions.
4.5. Impact of HQDI Sub-Items on the Decoupling Effect
The findings of the preceding analysis reveal that HQDI plays a crucial role in the decoupling of economic growth and pollution emissions. To further explore the underlying drivers, HQDI was disaggregated into five dimensions, and their impacts on decoupling were analyzed. The results are presented in
Table 8.
The results in
Table 8 reveal that innovation, openness, and sharing significantly enhance the decoupling relationship, suggesting that technological progress, global integration, and social sharing foster economic growth while reducing emissions. In contrast, green development and coordinated development show positive but statistically insignificant effects. For green development, including both green and brown industries dilutes the positive impact of environmentally friendly sectors, as high-energy-consuming brown industries offset gains. The coordinated development indicator reflects disparities in industry and regional electricity consumption and lacks significance. This finding suggests that resource distribution and regional development imbalances have not effectively contributed to decoupling economic growth from pollution emissions.
This study also analyzes how sub-indicators in the three dimensions—innovation, green development, and coordinated development—impact decoupling. The results, detailed in
Appendix A,
Table A2 and
Table A3, demonstrate that all three dimensions of innovation, including digital economy development (digital industrialization and industrial digitization) and high-technology industry growth, significantly promote decoupling. By introducing clean technologies and more efficient production processes, innovation helps reduce pollution emissions while driving economic growth, fostering a decoupling effect.
In contrast, the development of brown industries, as part of the green indicators, shows a significant negative impact. High-polluting, energy-intensive industries tend to have low production efficiency, and the cost of adopting cleaner energy or technologies is often prohibitive. These industries focus on immediate profits while neglecting environmental concerns. Consequently, an increase in the electricity consumption of brown industries signifies greater output but also leads to higher pollution emissions, hindering decoupling. On the other hand, green industries typically utilize clean energy or environmental technologies, meaning their growth contributes to lower pollution emissions, thus promoting decoupling. However, as the results show, the effect of green industries on decoupling is limited, likely due to their smaller share of total electricity consumption and relatively modest contribution to broader economic and environmental dynamics.
Regarding coordinated development (regional and industrial coordination), we find that while reduced differences between regions and industries could improve resource allocation, energy use, industrial structure, and technological innovation, it does not always enhance decoupling. The absence of a clear shift toward cleaner industries or cleaner energy technologies means that coordination, without an emphasis on sustainability, may inadvertently lead to more pollution-intensive industrial activities. Therefore, if coordination leads to an industrial structure that favors high-polluting and high-emission sectors, it could limit the potential for decoupling.
Openness, as indicated by the growth of the logistics industry, shows a positive influence on decoupling. An expansion of the logistics sector drives economic growth, but it also promotes smart logistics and efficient systems that reduce energy consumption and pollution. Moreover, logistical improvements lead to resource optimization, lower transportation costs, and reduced emissions, collectively contributing to the decoupling of economic growth from pollution.
As for shared development, specifically the disparities in urban and rural electricity consumption and public infrastructure differences, we observe no significant impact on decoupling. The primary reason is that residential electricity consumption in urban and rural areas mainly supports daily living, with limited direct influence on economic growth and emissions. Similarly, infrastructure disparities reflect regional imbalances but do not directly affect the decoupling process. Additionally, the expansion of SMEs positively affects decoupling by driving market dynamism, promoting technological innovation, and improving resource efficiency. In contrast, a reduction in SME capacity negatively impacts decoupling, likely because it diminishes economic activity and investment in environmental technologies. This, in turn, hinders decoupling efforts and further verifies the promotion of decoupling brought by expanding SMEs. All the results above support the hypothesis 2 in this study that all dimensions of high-quality development contribute to the decoupling effect, while the development of brown industries may hinder the decoupling effect.
5. Conclusions and Outlook for Future Research
This study conducted a comprehensive investigation into the influence of high-quality development on the decoupling effect between economic growth and pollution emissions across nine prefecture-level cities in Fujian Province. By employing the input–output analysis method, this study calculated the direct electricity consumption coefficients of various industries and determined the total regional output using industrial electricity consumption and electricity price data. This study constructed a decoupling index using the Tapio decoupling method, while the entropy method was utilized to build an HQDI grounded in the five principles of innovation, green, coordination, openness, and sharing. The findings reveal that HQDI significantly contributes to achieving decoupling, with innovation, openness, and sharing playing crucial roles. On the other hand, brown industry development and the installation of electricity capacity by SMEs negatively impact the decoupling process. Extreme temperatures also exert a substantial adverse effect, while increased market concentration supports decoupling.
Based on the study’s findings, several policy recommendations are proposed to promote sustainable economic growth while decoupling it from pollution emissions. Firstly, innovation and openness should be incentivized through R&D support and industry–university collaborations, fostering the adoption of cleaner technologies. Additionally, stronger policies to support green industries and environmentally friendly technologies are essential, as brown industries hinder decoupling. Energy efficiency standards for SMEs should be implemented, alongside financial and technical assistance, to reduce their energy consumption. To address the negative impacts of extreme weather, climate-resilient infrastructure and increased use of renewable energy should be prioritized. Furthermore, promoting market concentration can enhance energy efficiency and sustainability, though regulatory oversight is necessary to maintain competition. Expanding renewable energy usage and refining the HQDI to include emerging factors like digital technologies and circular economies will also support decoupling. These integrated policy measures aim to guide Fujian Province and similar regions toward a balanced and sustainable development trajectory.
The decision to focus on Fujian Province in this study stems primarily from the availability of extensive electricity consumption data, which provide a solid foundation for our analysis. Additionally, Fujian’s industrial structure and significance within the broader national context make it a representative case for understanding high-quality growth strategies and decoupling processes. However, this focus on a single province is also a limitation of the study, as the findings may not be fully generalizable to regions with different industrial profiles or energy dynamics. Fortunately, the proposed methodology will be applied to other regions or countries once electricity consumption and price data are available. Future research could expand the geographical scope and incorporate additional variables, such as renewable energy usage, innovation capabilities, and policy interventions, to offer a more holistic understanding of decoupling dynamics across diverse regions. Moreover, investigating the impact of green technologies and government policies on decoupling could provide valuable insights into how sustainable economic growth can be further promoted, shedding light on the complex relationship between economic development and environmental sustainability.