Relocate or Innovate? The Impact of Environmental Regulation Stringency on Pollution-Intensive Firms in China

2020 ◽  
Author(s):  
Yizhe Dong ◽  
Wenxuan Hou ◽  
Liang Xi ◽  
Tianju Wang
Keyword(s):  
Environmental Regulation ◽  
The Impact

scholarly journals Environmental Regulation and Exports: Evidence from the Comprehensive Air Pollution Policy in China

2021 ◽  
Vol 18 (3) ◽  
pp. 1316 ◽  
Author(s):  
Hong Chen ◽  
Yang Xu
Keyword(s):  
Air Pollution ◽  
Environmental Regulation ◽  
Pollution Prevention ◽  
Firm Entry ◽  
Entry And Exit ◽  
Control Plan ◽  
Heterogeneous Effects ◽  
The Impact ◽  
The City ◽  
Firm Entry And Exit

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.

scholarly journals How Does Environmental Regulation Affect the Relationship between FDI and Technological Innovation: From the Perspective of Technology Transactions

Processes ◽  
2021 ◽  
Vol 9 (8) ◽  
pp. 1264
Author(s):  
Meng Zeng ◽  
Lihang Liu ◽  
Fangyi Zhou ◽  
Yigui Xiao
Keyword(s):  
Environmental Regulation ◽  
Technological Innovation ◽  
Pollutant Emissions ◽  
Regulatory Effect ◽  
Host Countries ◽  
Regional Heterogeneity ◽  
Industrial Sectors ◽  
Reduction Effect ◽  
The Impact ◽  
The Relationship

Many studies have found that FDI can reduce the pollutant emissions of host countries. At the same time, the intensity of environmental regulation would affect the emission reduction effect of FDI in the host country. This study aims to reveal the internal mechanisms of this effect. Specifically, this paper studies the impact of FDI on technological innovation in China’s industrial sectors from the perspective of technology transactions from 2001 to 2019, and then analyzes whether the intensity of environmental regulation can promote the relationship. Results indicate that FDI promotes technological innovation through technology transactions. In addition, it finds that the intensity of environmental regulation significantly positively moderates the relationship between FDI and technological innovation, which is achieved by positively moderating the FDI–technology transaction relationship. Regional heterogeneity analysis is further conducted, and results show that in the eastern and western regions of China, FDI can stimulate technological innovation within regional industrial sectors through technology trading. Moreover, environmental regulation has a significant positive regulatory effect on the above relationship, but these effects are not supported by evidence in the central region of China.

scholarly journals Environmental Regulation, Environmental Awareness and Environmental Governance Satisfaction

2021 ◽  
Vol 13 (7) ◽  
pp. 3960
Author(s):  
Meng-Meng Geng ◽  
Ling-Yun He
Keyword(s):  
Environmental Regulation ◽  
Environmental Governance ◽  
Negative Impact ◽  
Positive Impact ◽  
Subjective Evaluation ◽  
Environmental Awareness ◽  
General Social Survey ◽  
Probit Model ◽  
The People ◽  
The Impact

It is a problem worth thinking about whether the government’s environmental regulation policies can meet the residents’ requirements for environmental quality, and benefit the people. The study of the public’s subjective evaluation can more intuitively judge whether the government’s environmental regulation has realized “ecological benefits for the people”. Based on the data of the Chinese General Social Survey (CGSS) in 2013, this paper studied the impact of environmental regulation and environmental awareness on environmental governance satisfaction by an ordered probit model. The study found that environmental regulation has a significant positive impact on environmental governance satisfaction, while environmental awareness has a significant negative impact on environmental governance satisfaction. We also found that when public environmental awareness is taken into account, the positive relationship between environmental regulation and environmental governance satisfaction is affected. The robustness test proved this conclusion.

scholarly journals The Impact of Environmental Regulation on the Location of Pollution-Intensive Industries in China under Agglomeration Effect

2021 ◽  
Vol 18 (8) ◽  
pp. 4045
Author(s):  
Yinhao Wu ◽  
Shumin Yu ◽  
Xiangdong Duan
Keyword(s):  
Environmental Regulation ◽  
Local Economic Development ◽  
Negative Impact ◽  
Empirical Test ◽  
Mediating Effect ◽  
Production Costs ◽  
Agglomeration Effect ◽  
The Government ◽  
Pollutant Discharge ◽  
The Impact

Pollution-intensive industries (PIIs) have both scale effect and environmental sensitivity. Therefore, this paper studies how environmental regulation (ER) affects the location dynamics of PIIs under the agglomeration effect. Our results show that, ER can increase the production costs of pollution-intensive firms (PIFs) by internalizing the negative impact of pollutant discharge in a region, and thus, directly reduces the region’s attractiveness to PIFs. Meanwhile, ER can indirectly reduce the attractiveness of a region to PIFs by reducing the externality of the regional agglomeration effect. Moreover, these influences are regulated by the level of local economic development. Based on the moderated mediating effect model, we find evidence from the site selection activities of newly built chemical firms in cities across China. The empirical test shows that compared with 2014, the proportion of the direct effect of ER to the total effects significantly decreased in 2018, while the proportion of indirect effects under the agglomeration effect increased significantly. Our findings provide reference for the government to design effective environmental policies to guide the location choice of new PIFs.

scholarly journals How Does Environmental Regulation Affect Industrial Transformation? A Study Based on the Methodology of Policy Simulation

2016 ◽  
Vol 2016 ◽  
pp. 1-10 ◽  
Author(s):  
Wei Liu ◽  
Jian Tong ◽  
Xiaohang Yue
Keyword(s):  
Resource Allocation ◽  
Environmental Regulation ◽  
Spillover Effect ◽  
Policy Simulation ◽  
Industrial Transformation ◽  
Input Structure ◽  
Distortion Effect ◽  
The Difference ◽  
The Impact ◽  
Factor Input

The difference of factor input structure determines different response to environmental regulation. This paper constructs a theoretical model including environmental regulation, factor input structure, and industrial transformation and conducts a policy simulation based on the difference of influencing mechanism of environmental regulation considering industrial heterogeneity. The findings show that the impact of environmental regulation on industrial transformation presents comparison of distortion effect of resource allocation and technology effect. Environmental regulation will promote industrial transformation when technology effect of environmental regulation is stronger than distortion effect of resource allocation. Particularly, command-control environmental regulation has a significant incentive effect and spillover effect of technological innovation on cleaning industries, but these effects do not exist in pollution-intensive industries. Command-control environmental regulation promotes industrial transformation. The result of simulation showed that environmental regulation of market incentives is similar to that of command-control.

scholarly journals The effects of environmental regulation and technological innovation on green growth: A theoretical analysis

2018 ◽  
Vol 53 ◽  
pp. 04054
Author(s):  
Xuefei Xu ◽  
Lili Wang ◽  
Shang Chen
Keyword(s):  
Environmental Regulation ◽  
Technological Innovation ◽  
Positive Impact ◽  
Causal Chain ◽  
Mediation Model ◽  
Green Growth ◽  
Positive Role ◽  
Long Run ◽  
The Impact ◽  
Causality Chain

As green growth has attracted a great deal of attention due to the growing concern about the degradation of natural resources and environmental pollution in China, the questions of how to achieve it and which factors drive green growth have become hot topics. Environmental regulation and technological innovation are two main fulcrums in the realization of green growth. However, there is lacking a deeper understanding of the impact of environmental regulation and technological innovation on green growth in a methodological framework. Accordingly, this paper attempts to analyze how these factors affect the implementation of green growth in a model. The findings reveal that (1) in the short term, environmental regulation has inhibited green growth, but has a positive impact on green growth in the long run, (2) technological innovation plays a positive role in green growth improvement, and (3) the causality chain among regulation, technological innovation, and green growth is a typical mediation model. Technological innovation plays an important mediation role in the causal chain. This study not only enriches and deepens theories on green growth, but also successfully implements green growth practices and improve their performance.

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