The effect of environmental regulation on air pollution, productivity, and factor structure: a quasi-natural experiment evidence from China

2020 ◽  
Vol 27 (16) ◽  
pp. 20392-20409 ◽  
Author(s):  
Ning Zhang ◽  
Keke Zhao ◽  
Yantuan Yu
Author(s):  
Hong Chen ◽  
Yang Xu

The impact of environmental regulation has been an important topic. Based on the Chinese Custom Database and China City Statistical Yearbook, this paper investigates the effect of environmental regulation on export values and explores potential mechanisms and heterogeneous effects. Taking advantage of China’s first comprehensive air pollution prevention and control plan, the Air Pollution Control in Key Zones policy, as a quasi-natural experiment, we employ the difference-in-differences method to examine the causal relationship between environmental regulation and exports. We find the statistically significant and negative effect of environmental regulation on exports at the city level. Moreover, we find that the potential mechanism is the change in export values caused by firm entry and exit, especially by exiters, rather than the change in the number of exporting firms in the city caused by firm entry and exit. In addition, we find the heterogeneous effects of environmental regulation based on the differences of environmental policy across cities and the Broad Economic Categories classification.


2021 ◽  
Vol 12 (4) ◽  
pp. 21-30
Author(s):  
Yan Song ◽  
Zhenran Li ◽  
Jun Liu ◽  
Tingting Yang ◽  
Ming Zhang ◽  
...  

2019 ◽  
Vol 12 (1) ◽  
pp. 134 ◽  
Author(s):  
Xuehui Zhang ◽  
Zhidong Tan ◽  
Bao-Guang Chang ◽  
Kam C. Chan

In February 2017 China began to require the regional coordination of four ministries and 28 cities surrounding Beijing to manage air pollution. The Coordination attempts to unify air pollution standards and implements various new methods to monitor air pollution. Leveraging the natural experiment and using a difference-in-differences research design, we note that firms located in the treatment cities invest more in the environment than those in the control cities. In addition, we find that non-state-owned firms (non-SOEs) respond more strongly than SOEs. The findings remain qualitatively the same after accounting for selection bias in the cities included in the Coordination. Most importantly, air quality improves for treatment cities after the implementation of the Coordination. Our findings offer lessons to other emerging markets for implementing their air pollution management programs. Specifically, we sharpen our knowledge of the administrative management needed to improve coordination among government agencies and local officials in the management of air pollution and suggest that the government can play an active role in enhancing air pollution management.


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