Does Industrial Structure Upgrading Improve the Total Factor Productivity in Water Environment? Evidence from the Beijing-Tianjin-Hebei Region

The coordinated development of the Beijing-Tianjin-Hebei region has promoted economic development and environmental protection. In addition to water shortage issues, this region faces water pollution challenges. This study aimed to explore the impact of industrial structure upgrading in the Beijing-Tianjin-Hebei region on the total factor productivity in the water environment using 2011–2018 panel data from the three cities. Results showed that, first, upgrading of industrial structure significantly promoted the total factor productivity in the water environment in the aforementioned region. Robustness testing through missing variables, instrumental variables, and changing core explanatory variables confirmed the robustness and reliability of our results. Second, digital economy development and increased human capital exhibited a positive regulatory effect on the promoting effect of industrial structure upgrading. Third, this promoting effect was achieved by reducing water pollution and enhancing innovation. Lastly, in Hebei, this improvement was noted in cities with medium-to-high-level industrial development and those with high levels of environmental public services. Therefore, industrial structure upgrading in the Beijing-Tianjin-Hebei region contributes to economic development and the protection of the water ecological environment. This study provides theoretical guidance for the coordinated development of the Beijing-Tianjin-Hebei region.