This study integrates factor price distortion, industrial structure upgrading and industrial
environmental efficiency into an analytical framework and identifies the relationship between factor
price distortion and industrial environmental efficiency using the fixed effect model. Meanwhile,
we also examine the influence mechanism of industrial structure upgrading on the factor price
distortion affecting industrial environmental efficiency. The results indicate that factor price distortion
significantly inhibits industrial environmental efficiency. Moreover, we analyze the interaction between
factor price distortion and industrial structure upgrading and find that the inhibitory effect of factor
price distortion on industrial environmental efficiency is weakened in areas with better upgrading of
industrial structure. Further investigation of the heterogeneity effect shows that the negative effect
of factor price distortion on industrial environmental efficiency is more significant in the central
and western regions. The government should improve the distortion of factor price and optimize the
industrial structure so as to promote the green development of industrial industry.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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