scholarly journals Going Green or Going Away? A Spatial Empirical Examination of the Relationship between Environmental Regulations, Biased Technological Progress, and Green Total Factor Productivity

2018 ◽  
Vol 15 (9) ◽  
pp. 1917 ◽  
Author(s):  
Xueli Wang ◽  
Caizhi Sun ◽  
Song Wang ◽  
Zhixiong Zhang ◽  
Wei Zou
Keyword(s):  
Economic Development ◽  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Capital Stock ◽  
Technological Progress ◽  
Environmental Regulations ◽  
Factor Productivity ◽  
Total Capital ◽  
Green Gdp ◽  
The Relationship

China’s economic development has resulted in significant resource consumption and environmental damage. However, technological progress is important for achieving coordinated economic development and environmental protection. Appropriate environmental regulation policies are also important. Although green total factor productivity, environmental regulations, and technological progress vary by location, few studies have been conducted from a spatial perspective. However, spatial spillover effects should be taken into consideration. This study used energy consumption, the sum of physical capital stock and ecological service value as total capital stock, the number of employed people as inputs, sulfur dioxide emissions as undesired outputs, and green GDP as total output to obtain green TFP through a slacks-based measure (SBM) global Malmquist-Luenberger Index. This study also estimated China’s biased technological progress under environmental constraints from 2004 to 2015 based on relevant data (e.g., green GDP, total capital stock, and employment figures). The relationship between green total factor productivity (GTFP), technological progress, and environmental regulation was then examined using a spatial Durbin model. Results were as follows: (1) Based on the complementary elements, although the labor costs gradually increase, the rapid accumulation of capital leads to technological progress that is biased toward capital. However, technological progress in the labor bias can significantly increase GTFP. (2) There is a u-shaped relationship between existing environmental regulations and GTFP. Technological progress can significantly promote GTFP in the surrounding areas through existing environmental regulations. (3) Under spatial weight, the secondary industry coefficient was negative while human capital stock and FDID had positive effects on GTFP. Technological progress is the source of economic growth. It is therefore necessary to promote biased technological development and improve labor-force skills while implementing effective environmental regulation policies.

scholarly journals The Relationship between Environmental Regulation and Green Total Factor Productivity in China: An Empirical Study Based on the Panel Data of 177 Cities

2020 ◽  
Vol 17 (15) ◽  
pp. 5287 ◽  
Author(s):  
Mingliang Zhao ◽  
Fangyi Liu ◽  
Wei Sun ◽  
Xin Tao
Keyword(s):  
Economic Development ◽  
Panel Data ◽  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Inflection Point ◽  
Factor Productivity ◽  
Positive Effects ◽  
Development Level ◽  
The Mean ◽  
The Relationship

Promoting the coordinated development of industrialization and the environment is a goal pursued by all of the countries of the world. Strengthening environmental regulation (ER) and improving green total factor productivity (GTFP) are important means to achieving this goal. However, the relationship between ER and GTFP has been debated in the academic circles, which reflects the complexity of this issue. This paper empirically tested the relationship between ER and GTFP in China by using panel data and a systematic Gaussian Mixed Model (GMM) of 177 cities at the prefecture level. The research shows that the relationship between ER and GTFP is complex, which is reflected in the differences and nonlinearity between cities with different monitoring levels and different economic development levels. (1) The relationship between ER and GTFP is linear and non-linear in different urban groups. A positive linear relationship was found in the urban group with high economic development level, while a U-shaped nonlinear relationship was found in other urban groups. (2) There are differences in the inflection point value and the variable mean of ER in different urban groups, which have different promoting effects on GTFP. In key monitoring cities and low economic development level cities, the mean value of ER had not passed the inflection point, and ER was negatively correlated with GTFP. The mean values of ER variables in the whole sample, the non-key monitoring and the middle economic development level cities had all passed the inflection point, which gradually promoted the improvement of GTFP. (3) Among the control variables of the different city groups, science and technology input and the financial development level mainly had positive effects on GTFP, while foreign direct investment (FDI) and fixed asset investment variables mainly had negative effects.

scholarly journals Financial Development and Environmental Regulations: The Two Pillars of Green Transformation in China

2020 ◽  
Vol 17 (24) ◽  
pp. 9242
Author(s):  
Cong Li ◽  
Xihua Liu ◽  
Xue Bai ◽  
Muhammad Umar
Keyword(s):  
Economic Development ◽  
Environmental Regulation ◽  
Financial Development ◽  
Technological Progress ◽  
Environmental Regulations ◽  
Theoretical Framework ◽  
Porter Hypothesis ◽  
Chinese Enterprises ◽  
The Relationship ◽  
China’S Economy

Awareness of the influence of environmental regulations and financial development on green technological progress by Chinese enterprises will help to promote the green transformation of China’s economy, thereby comprehensively enhancing the quality and competitiveness of its economic development. This paper constructs a theoretical framework to analyze environmental regulation, financial development, and green technological progress and studies the relationship among these three indicators using 2004–2018 data from Shandong province. The results show that environmental regulations and financial development both play roles in promoting green technological progress, but as environmental regulation becomes stronger, the effects of finance on green technological progress begin to differ across regions. The results partially verify the applicability of the Porter hypothesis in China, providing a reference for all levels of government to formulate scientific and reasonable environmental rules and policies.

scholarly journals Environmental Regulation, Trade Comparative Advantage, and the Manufacturing Industry’s Green Transformation and Upgrading

2020 ◽  
Vol 17 (8) ◽  
pp. 2823 ◽  
Author(s):  
Mengqi Gong ◽  
Zhe You ◽  
Linting Wang ◽  
Jinhua Cheng
Keyword(s):  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Comparative Advantage ◽  
Manufacturing Industry ◽  
Environmental Regulations ◽  
Manufacturing Industries ◽  
Productivity Index ◽  
Chinese Government ◽  
Factor Productivity ◽  
Trade Patterns

This paper is the first to systematically review the theoretical mechanisms of environmental regulation and trade comparative advantage that affect the green transformation and upgrading of the manufacturing industry. On this basis, corresponding hypotheses are put forward. The non-radial and non-angle SBM (slacks-based measure) efficiency measurement model with undesirable outputs was used, combined with the use of the ML (green total factor productivity index) productivity index to measure green total factor productivity. Finally, the theoretical hypothesis was empirically tested using data from 27 manufacturing industries in China from 2005 to 2017. The results show the following: (1) There is a significant inverted U-shaped curve relationship between environmental regulation and the transformation of the manufacturing industry. In other words, as environmental regulation increases, its impact on the transformation and upgrading of the manufacturing industry is first promoted and then suppressed. (2) When there are no environmental regulations, the trade comparative advantage of the manufacturing industry is not conducive to industrial transformation. However, under the constraints of environmental regulations, the comparative advantage of trade will significantly promote the green transformation and upgrading of manufacturing. Therefore, in order to effectively promote transformation and upgrading of the manufacturing, this paper proposes the following policy recommendations: (1) The Chinese government should pay more attention to the impact of environmental regulation intensity on the transformation of manufacturing industries, further increase the intensity of environmental regulation within the reasonable range, and fully exert the positive effects of environmental regulation on the trade patterns and manufacturing industry transformation. (2) We should further optimize the structure of trade, realize the diversification of manufacturing import and export, and promote its transformation into high-end manufacturing. On this basis, green production technology in the manufacturing industry can be improved through the technology spillover effect. (3) Efforts should be made to improve the level of collaborative development between environmental regulation and trade patterns and to explore the transformation path of the manufacturing industry with the integration of environmental regulation and trade patterns.

scholarly journals Environmental Regulation, Enterprises' Bargaining Power, and Enterprises' Total Factor Productivity: Evidence from China

2021 ◽  
Author(s):  
Shuwang Yang ◽  
Chao Wang ◽  
Hao Zhang ◽  
Tingshuai Lu ◽  
Yang Yi
Keyword(s):  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Environmental Economics ◽  
Bargaining Power ◽  
Factor Productivity ◽  
Firm Level ◽  
Capital Cities ◽  
Provincial Capital ◽  
The Government ◽  
The Relationship

Abstract The relationship between environmental regulation and enterprises' total factor productivity (TFP) has been a hot topic in the field of environmental economics, but the conclusions are still mixed. Employing a sample of 14,110 firm-year observations in China from 2010 to 2018, our research explores whether and when environmental regulation could trigger firms, to enhance TFP. The available evidence leads us to cautiously conclude that: 1) Environmental regulation notably improves enterprises' TFP, the conclusion still holds after a series of robustness tests. 2) Enterprises' bargaining power significantly weakens the influence of environmental regulation on enterprises' TFP. 3) Compared with non-state-owned enterprises and non-heavy-polluting industries, environmental regulation has a greater impact on state-owned enterprises and heavy-polluting industries; higher executive compensation does not motivate firms to improve TFP; compared with enterprises headquartered in non-provincial capital cities, environmental regulation has a greater impact on enterprises' TFP in provincial capital cities. Overall, the findings of our research are extremely relevant for the government, investor, and enterprise's manager, this paper provides micro-firm-level evidence for the Porter hypothesis in practice in China.

scholarly journals Improvement of Different Types of Environmental Regulations on Total Factor Productivity: A Threshold Effect Analysis

2019 ◽  
Vol 2019 ◽  
pp. 1-12
Author(s):  
Xubin Lei ◽  
Shusheng Wu
Keyword(s):  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Environmental Regulations ◽  
Threshold Model ◽  
Threshold Effect ◽  
Impact Behavior ◽  
Factor Productivity ◽  
Data Set ◽  
Different Types ◽  
The Impact

Based on the distinction of different types of environmental regulations, this paper attempts to test the threshold effect of environmental regulation on the total factor productivity (TFP) by employing a panel threshold model and a province-level panel data set during 2006–2016. Research results show that the influence of command-and-control and market incentive environmental regulation on the total factor productivity has a single threshold conversion characteristic of foreign direct investment (FDI) and financial scale, but the impact behavior and influence degree around the threshold are inconsistent. The effect of voluntary conscious environmental regulation on the total factor productivity has a single threshold conversion feature of human capital, and moderately enhanced intensity of environmental regulation is conducive to promoting the total factor productivity after crossing the threshold. Finally, in order to enhance the regional total factor productivity, relevant policy recommendations are proposed.

scholarly journals The Influence Study on Environmental Regulation and Green Total Factor Productivity of China’s Manufacturing Industry

2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
Ying Li ◽  
Siyu Li
Keyword(s):  
Technical Efficiency ◽  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Manufacturing Industry ◽  
Environmental Regulations ◽  
Environmental Benefits ◽  
Productivity Index ◽  
Factor Productivity ◽  
Green Development ◽  
High Investment

Green development is the theme of the current era. Environmental regulation is an essential means to achieve environmental benefits and improve the total green factor productivity of manufacturing facing a series of problems brought by the development model of “high investment, high pollution, and high consumption.” Appropriate environmental regulations need to be implemented to achieve economic and environmental harvest. Based on the panel data of 25 manufacturing industries from 2003 to 2016 in China, this thesis constructs a comprehensive indicator of environmental regulation and calculates the green total factor productivity, and its decomposition applied SBM directional distance function and Malmquist–Luenberger productivity index. Besides, this thesis conducts an empirical analysis of environmental regulation’s effect on green productivity in China. The main conclusions showed that the green total factor productivity of China’s manufacturing industry maintains an upward trend on the whole, and the growth of GTFP mainly depends on technological progress rather than the improvement of technical efficiency. The great differences have significant industrial heterogeneity characteristics of GTFP. A single threshold in the whole manufacturing industry, environmental regulation, and GTFP of industries are shown to be “U shape,” and the left of the inflection point is not significant. Environmental regulations and GTFP of moderation and slightly pollution industries are “U shape,” and there is no nonlinear relationship between environmental regulation intensity and GTFP in light pollution industries. Therefore, the government’s optimal environmental regulation intensity should be implemented according to the industry’s heterogeneity to prevent the phenomenon of “ineffective regulation;” it is necessary to pay attention to both technological innovation and technical efficiency.

scholarly journals Can a Win–Win Situation of Economy and Environment Be Achieved in Cities by the Government’s Environmental Regulations?

2021 ◽  
Vol 13 (11) ◽  
pp. 5829
Author(s):  
Xinfei Li ◽  
Baodong Cheng ◽  
Qiling Hong ◽  
Chang Xu
Keyword(s):  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Environmental Quality ◽  
Negative Impact ◽  
Environmental Regulations ◽  
Removal Rate ◽  
Utilization Rate ◽  
Factor Productivity ◽  
Regulatory Policies ◽  
The Impact

Based on the panel data of 216 prefecture-level cities in China from 2003 to 2016, this study selected five emission-reduction indicators (industrial SO2 removal rate, soot removal rate, comprehensive utilization rate of industrial solid waste, domestic sewage treatment rate, and harmless treatment of domestic waste rate) to quantify the intensity of urban environmental regulations. Based on the intensity of environmental regulations, the authors further studied the impact of environmental regulations on economic quality (green total factor productivity) and environmental quality (PM2.5). The test results showed that the impact of environmental regulation on PM2.5 is a U-type change that first declines and then rises, while the impact of the implementation of environmental regulation on green total factor productivity is an inverted U-shaped change, which first increases and then decreases. On the one hand, appropriate environmental regulations are conducive to improving environmental quality and improving urban green total factor productivity. On the other hand, excessive environmental regulations have not only failed to improve environmental quality, but also have a negative impact on the improvement of economic quality. In addition, there are regional differences in the impact of environmental regulations, so it is necessary to formulate appropriate and local environmental regulatory policies.

scholarly journals Research on Threshold Effect of Environmental Regulation and Green Total Factor Productivity

2019 ◽  
Vol 118 ◽  
pp. 03002
Author(s):  
guangyuan Cao ◽  
zhiyuan Dong ◽  
zenglian Zhang
Keyword(s):  
Economic Development ◽  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Local Governments ◽  
Threshold Effect ◽  
Factor Productivity ◽  
Positive Role ◽  
Effect Model ◽  
The Impact ◽  
Double Threshold

This paper selects the panel data of 30 provinces in China from 2005 to 2016, and uses the threshold effect model to analyze the correlation between environmental regulation and green total factor productivity (GTFP). The results show that: The impact of environmental regulation on GTFP is non-linear and has a double threshold effect. Therefore, the local governments of all provinces should continue to play a positive role in environmental regulation, reasonably adjust the level of environmental regulation according to local specific economic development and industrialization level, etc., and strive to promote the transformation of medium and high polluting enterprises to green environmental protection enterprises..

scholarly journals Yangtze River Basin Environmental Regulation Efficiency Based on the Empirical Analysis of 97 Cities from 2005 to 2016

2021 ◽  
Vol 18 (11) ◽  
pp. 5697
Author(s):  
Qian Zhang ◽  
Decai Tang ◽  
Brandon J. Bethel
Keyword(s):  
Environmental Regulation ◽  
Total Factor Productivity ◽  
River Basin ◽  
Yangtze River ◽  
Technological Progress ◽  
Yangtze River Basin ◽  
Efficiency Index ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Factor Productivity

The Yangtze River Basin (YRB) is an important area for China’s economic development and environmental governance. The aim of this paper is to analyze the total factor productivity across 97 cities in the YRB from 2005 to 2016. Based on the input and output indicators from 2005 to 2016, this paper selects the SE-SBM model to measure the environmental regulation efficiency (ERE) of 97 cities in the YRB and then uses the DEA–Malmquist index to measure the total factor productivity of the region. Results suggest that the overall ERE in the YRB is weakly ineffective, while ERE in the central and eastern coastal areas is relatively high. ERE matches the economic foundation and development of the city. YRB environmental regulation efficiency was in descending order in the middle stream, upstream, and downstream. The efficiency of regional environmental regulation shows an N-type development trend, with obvious characteristics of phased development. Moreover, the total factor productivity of the YRB has shown a downward trend. The scale efficiency index and the technical efficiency index have positively boosted the total factor productivity, while the technological progress index has dragged down the total factor productivity of the area. The contribution to the total factor productivity index is in order of scale efficiency, technological progress index, and technological efficiency index in the downstream. The overall inputs and outputs of the YRB have great development potential. The inputs have not been fully utilized, the outputs have not been maximized, and the regional differentiation is significantly observable.

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