The impact of management capacity on local green economic strategies

To solve the conflict between environmental protection and economic development, local policy makers have pursued sustainable development as an alternative way of balancing both values. This research employs a resource-based view and investigates how the management capacities of local governments influence the enactment of green economic strategies. Using data from the 2010 National Association of Counties survey, this study employs a structural equation model and tests the role of the management capacity of local government. The results suggest that financial investment by local government may not guarantee a direct effect on the enactment of green economic strategies. Rather, the management capacity of local government can mediate the effects of financial investment on the enactment of green economic strategies. In particular, the findings indicate that at the local government level, administrative capacities and the creation of special staff positions positively mediate the effects of financial investment on the enactment of green economic strategies.