scholarly journals Opportunity Cost of Environmental Regulation in China’s Industrial Sector

2021 ◽  
Vol 18 (16) ◽  
pp. 8579
Author(s):  
Ye Wang ◽  
Yunguo Lu ◽  
Lin Zhang
Keyword(s):  
Environmental Regulation ◽  
Technical Change ◽  
Opportunity Cost ◽  
Negative Impact ◽  
Environmental Regulations ◽  
National Level ◽  
Industrial Sector ◽  
Policy Implications ◽  
Carbon Abatement ◽  
Positive Direct

In this paper, we employ a directional distance function to estimate the opportunity cost arising from environmental regulations in China’s industrial sector. The change of opportunity cost is decomposed mathematically into two components including technical change and input change. Our results show that the opportunity cost attributed to environmental regulation is nil in some regions. The change of opportunity cost is marginal at the national level, as the positive effect of technical change is canceled out by the negative impact of input change on opportunity cost. Built on our mathematical decomposition, we further estimate the effects of environmental regulations on opportunity cost using a mediation model. It shows that environmental regulation has a significantly positive direct effect and a significantly negative indirect effect through foreign direct investment on opportunity cost. Our findings suggest, firstly, that inward FDI in China’s industrial sector represents relatively dirty production technology; and, secondly, industrial production has transited towards a less carbon-intensive input mix. This paper, therefore, provides new insights for the recent dynamics of carbon abatement performance of China’s industrial sector with policy implications.

Impacts of Environmental Regulation on Sustainable Economic Growth

2018 ◽  
Vol 9 (9) ◽  
pp. 749-773
Author(s):  
Jonathan Fisher
Keyword(s):  
Economic Growth ◽  
Environmental Regulation ◽  
Technical Change ◽  
Best Practice ◽  
Environmental Regulations ◽  
The European Union ◽  
Porter Hypothesis ◽  
The United Kingdom ◽  
Environment Agency ◽  
Sustainable Economic Growth

There is considerable concern and debate about the economic impacts of environmental regulations. Jonathan Fisher, former Economics Manager at the Environment Agency in England and Wales, reviews the available evidence on this subject. Section 2 presents estimates of the costs and benefits of environmental regulations. Section 3 examines the impacts of environmental regulations on economic growth, innovation and technical change as well as impacts on competitiveness and any movement of businesses to less pollution havens. He questions call for greater certainty regarding future environmental regulations, whereas in fact there should be calls for less uncertainty. This section then suggests how this could be achieved. This section then finishes with an overview of the available evidence. This includes an examination of the Porter Hypothesis that environmental regulations can trigger greater innovation that may partially or more than fully offset the compliance costs. Section 4 then sets out principles for how better environmental regulation can improve its impacts on sustainable economic growth and illustrates how the European Union (EU) Water Framework Directive is a good example of the application of these principles in practice. Section 5 reviews current and recent political perspectives regarding developments in environmental regulations across the EU and shows how the United Kingdom (UK) has successfully positively managed to influence such developments so that EU environmental regulations now incorporate many of these principles to improve their impacts on economic growth. Section 5.1 then examines the implications of Brexit for UK environmental regulations. Finally, Section 6 sets out some best practice principles to improve the impacts of environmental regulation on sustainable economic growth, innovation and technical change.

scholarly journals Green Complexity, Economic Fitness, and Environmental Degradation: Evidence from U.S. State-Level Data

2021 ◽  
Author(s):  
İbrahim Tuğrul Çınar ◽  
İlhan Korkmaz ◽  
Muhammet Yunus Şişman
Keyword(s):  
Environmental Degradation ◽  
Environmental Quality ◽  
Negative Impact ◽  
National Level ◽  
State Level ◽  
Policy Implications ◽  
Green Economy ◽  
The Us ◽  
Green Production ◽  
Significant Negative Impact

Abstract Green production is one of the major debates as environmental degradation poses threats globally. The paper attempts to explore the relationship between green economy and environmental quality by using Economic Fitness approach. We develop a Green Complexity Index (GCI) dataset consists of 290 traded green-labeled products for the US States between 2002 and 2018. We analyze the environmental performance of green production using the GCI data at the sub-national level. Findings indicate that exporting more complex green products has insignificant effects on local (i.e., Sulfur dioxide, Particulate Matter 10) and global polluters such as Carbon dioxide (CO2), even accounting for per capita income. Yet, overall economic complexity has a significant negative impact on the emission levels implying that sophisticated production significantly improves environmental quality in the US. The insignificant impact of GCI on environmental degradation suggests that green product classifications should incorporate the production and end-use stages of goods to limit the adverse environmental effects of green-labeled products. The study, therefore, provides policy implications for green industrial policies.JEL codes: O18, Q56, R11

scholarly journals Environmental regulations, capacity utilization, and high-quality development of manufacturing: an analysis based on Chinese provincial panel data

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Hongyang Wang ◽  
Baizhou Li
Keyword(s):  
Environmental Regulation ◽  
Manufacturing Industry ◽  
Negative Impact ◽  
Environmental Regulations ◽  
Rapid Development ◽  
Capacity Utilization ◽  
Utilization Rate ◽  
Quality Development ◽  
High Quality ◽  
The Impact

AbstractThe high-quality development of the manufacturing industry is an important strategic task for Chinese economic development. The rapid development of the manufacturing industry is also accompanied by problems such as overcapacity and environmental pollution. This paper analyzes the impact of capacity utilization on the high-quality development of manufacturing and establishes a nonlinear threshold regression model on this basis, and studies and analyzes environmental regulations as a threshold variable under the influence of capacity utilization rate on the high-quality development of the manufacturing industry. The research results show that: capacity utilization, profitability, foreign direct investment, and government participation all have a significant positive impact on the high-quality development of the manufacturing industry; environmental regulations have a significant negative impact on the high-quality development of the manufacturing industry. And in the model of the effect of capacity utilization on the high-quality development of the manufacturing industry, environmental regulation has a single threshold effect. With the increase in the intensity of environmental regulation, the coefficient and significance of the effect of capacity utilization on the high-quality development of the manufacturing industry have changed. Finally, this article puts forward corresponding policies and suggestions based on the results of data analysis.

scholarly journals The Effect of Rainfall on Economic Growth in Thailand: A Blessing for Poor Provinces

Economies ◽  
2019 ◽  
Vol 8 (1) ◽  
pp. 1 ◽  
Author(s):  
Siriklao Sangkhaphan ◽  
Yang Shu
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
National Level ◽  
Industrial Sector ◽  
Andaman Sea ◽  
Climate Effect ◽  
Middle Income ◽  
Positive Effects ◽  
Significant Negative Impact ◽  
Service Sectors

Rainfall is related to economic growth and generally has beneficial impacts on dry and poor areas that are mostly dependent on rainfed agriculture. Thailand is a service-based, upper middle-income country with a tropical climate although rainfall varies regionally. The volume of precipitation in the northern and northeastern regions is rather low while the southern region has the highest rainfall due to its narrow topography running north-south bordering the Andaman Sea to the west and the Gulf of Thailand to the east. The present study explored the effect of rainfall on the growth of the gross provincial product (GPP) by economic sector and subsector using provincial-level panel data from 1995 to 2015. The feasible generalised least squares (FGLS) estimator with fixed effect was used in the regression models. We found that the main impacts of the weather occurred through rainfall and reduced GPP growth at the national level. For the sector level, the results showed that rainfall had a significant negative impact on the agricultural and service sectors while it had a positive but not significant impact on the industrial sector. However, rainfall remains vital in poor regions although it could be detrimental to certain subsectors in those regions. The results confirmed that the positive effects of rainfall mostly affected the economies of poor provinces and suggested that average rainfall could be the key climate effect on economic growth in Thailand.

scholarly journals Environmental regulation, green innovation, and international competitiveness of manufacturing enterprises in China: From the perspective of heterogeneous regulatory tools

PLoS ONE ◽  
2021 ◽  
Vol 16 (3) ◽  
pp. e0249169
Author(s):  
Yuanhong Hu ◽  
Sheng Sun ◽  
Yixin Dai
Keyword(s):  
Environmental Regulation ◽  
Production Technology ◽  
Environmental Regulations ◽  
Cleaner Production ◽  
Policy Implications ◽  
Voluntary Participation ◽  
Manufacturing Enterprises ◽  
Control Regulation ◽  
Export Competitiveness ◽  
The Impact

Based on combined data from the China Patent Database, China Industrial Enterprise Database, and China Customs Import and Export Database for the period 2004–2010, this study investigates the impact of heterogeneous environmental regulations on the export technological sophistication of manufacturing enterprises. Given deepening international market segmentation of production and the increasing proportion of intermediate trade, and compared with the traditional method based on exports, the export technological sophistication calculated here, based on value-added, is closer to the true level. Since there has been no in-depth comparative study on the relationship between heterogeneous environmental regulation and export technological sophistication, this study fills the gap. The results show that all three regulation types bear a U-shaped impact on export technological sophistication. Command-control regulation exhibits a restraining effect on mixed trade, eastern, and foreign-funded enterprises. Market-incentive regulation promotes processing and mixed trade enterprises as well as domestic and foreign-funded enterprises. Voluntary-participation regulation promotes all enterprises with different trade patterns and ownership. The mechanism analysis shows that command-control and market-participation environmental regulations affect export technological sophistication through the green invention and green utility innovation channels, while, additionally, market-incentive environmental regulation affects export technological sophistication through the green design innovation channel. Considering the environmental governance issues, the policy implications for enhancing the entire industrial chain and enterprises’ export competitiveness are clear. Due to the unclear functions and powers of competent departments and a rigid threshold, command-control regulation is not conducive to cleaner production technology and the promotion of enterprises’ export competitiveness; it should thus be discouraged. Although both market-incentive and voluntary-participation regulations have promoted cleaner production technology and enterprises’ competitiveness significantly, the environmental tax system requires continuous improvement. The government should continue to raise public involvement in environmental protection to enrich the channels and forms of environmental management.

scholarly journals The Relationship between Environmental Regulations and Green Economic Efficiency: A Study Based on the Provinces in China

2021 ◽  
Vol 18 (3) ◽  
pp. 889
Author(s):  
Gongli Luo ◽  
Xiaotong Wang ◽  
Lu Wang ◽  
Yanlu Guo
Keyword(s):  
Economic Efficiency ◽  
High Efficiency ◽  
Negative Impact ◽  
Environmental Regulations ◽  
National Level ◽  
Critical Value ◽  
Eastern Region ◽  
Low Efficiency ◽  
The Impact ◽  
The Relationship

This study examined the relationship between environmental regulations (ER) and green economic efficiency (GEE) based on the panel data of 30 provinces in China from 2008 to 2017. Firstly, GEE was calculated and evaluated using the super-efficiency SBM model with undesirable outputs. Secondly, the impact of ER on GEE was studied with the Tobit model. Finally, this article draws conclusions based on the above analysis and offers some suggestions for government and enterprise. The results show that the GEE of China is generally low. The GEE of the eastern region is much higher than that of the middle and western regions, with the western region performing slightly better than the middle. From west to east, there is a V shape, with high efficiency in the west and east and low efficiency in the middle. The impact of ER on GEE has the characteristics of nonlinearity and spatial heterogeneity. At the national level, as well as in the middle and western regions, the impact of ER on GEE shows an inverted U shape that first rises and then falls. ER are currently within the range conducive to the development of GEE. If the intensity of ER exceeds the critical value, they will have a negative impact on GEE. In the eastern region, the impact of ER on GEE is shown as a U shape that first falls and then rises. At present, the ER are not of sufficient intensity to contribute to the improvement of GEE. Only when the intensity of the ER exceeds the critical value will they have a positive influence on the GEE.

scholarly journals Evolution of Carbon Shadow Prices in China’s Industrial Sector during 2003–2017: A By-Production Approach

2020 ◽  
Vol 12 (2) ◽  
pp. 722 ◽  
Author(s):  
Wenyin Cheng ◽  
Zhusong Yang ◽  
Xia Pan ◽  
Tomas Baležentis ◽  
Xueli Chen
Keyword(s):  
Carbon Emissions ◽  
Value Added ◽  
The United States ◽  
Industrial Sector ◽  
Policy Implications ◽  
Shadow Prices ◽  
Carbon Abatement ◽  
Dea Model ◽  
Industrial Carbon ◽  
Empirical Results

Global warming and the rapid growth of carbon emissions have attracted the attention of governments and academia throughout the world. In 2006, China surpassed the United States as the emitter of the greatest volume of carbon, the largest contribution of which is derived from China’s industrial sector. This study investigated the evolution of industrial carbon shadow prices (CSPs) in China at the provincial level to assess the opportunity costs in terms of value added foregone owing to decreasing carbon emissions. A dual formulation of the by-production data envelopment analysis (DEA) model was applied to estimate the industrial carbon abatement costs in China during 2003–2017. This study represents the first attempt to apply the dual by-production DEA model for this purpose. Empirical results showed that industrial CSP increased by 3.83% annually and that the average provincial CSP was approximately $562.43 USD/ton. A significant upturn in the CSP occurred after 2006. Furthermore, disparities of changes in industrial CSP over time were checked using the test of sigma convergence. Regional divergence was observed for the period 2011–2017. Policy implications were derived from the empirical results in terms of improvements regarding carbon abatement.

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 Impacts of Cultural Diversity on Carbon Emission Effects: From the Perspective of Environmental Regulations

2020 ◽  
Vol 17 (17) ◽  
pp. 6109
Author(s):  
Ying-jie Song ◽  
Fu-wei Ma ◽  
Jing-ya Qu
Keyword(s):  
Cultural Diversity ◽  
Environmental Regulation ◽  
Cultural Difference ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Negative Impact ◽  
Environmental Regulations ◽  
Energy Regulation ◽  
Carbon Emission Reduction ◽  
The Impact

Cultural diversity is an issue not considered too often in traditional research on the influencing factors of carbon emission reduction to give full play to the effective participation of micro subjects in environmental regulation and to achieve the carbon emission reduction target. Aiming at the cultural diversity of micro subjects, this paper introduces the provincial dynamic index of cultural diversity and, from the perspective of environmental regulation, combines environmental regulation types such as energy regulation, economic regulation, and administrative regulation, to empirically study the impact of cultural difference on carbon emission reduction. We found that cultural diversity had a significant negative impact on carbon emission effects, and there is a one-way Granger causality between the two. Cultural diversity and environmental regulations exerted a synergistic impact on carbon emission effects. Through specific mechanism tests, the intermediary effect of environmental regulations was confirmed. Cultural diversity influenced carbon emission effects through the mediation of environmental regulations. From the perspective of the refined characteristics of different regions, possible cultural diversity in the southern region and regional energy consumption characteristics significantly affected carbon emission effects. On the basis of the conclusions reached in this empirical research, we put forward the following policy suggestions: emphasis should be placed on the function of culture and other non-institutional factors in the practice of environmental regulations; bottom-up environmental protection incentives must be strengthened, and required expression channels should be perfected; the role of various environmental regulations must be given full play in the process of carbon emission reduction.

The road to evidence based applicable policies for regional entrepreneurial ecosystems

2021 ◽  
Vol 10 (1) ◽  
pp. 59-77
Author(s):  
Johannes von Bloh
Keyword(s):  
Economic Development ◽  
Negative Impact ◽  
National Level ◽  
Policy Implications ◽  
Entrepreneurial Activity ◽  
Content Type ◽  
Entrepreneurial Ecosystems ◽  
Economic Development Agencies ◽  
Development Agencies ◽  
Empirical Foundation

PurposeEntrepreneurial Ecosystems (EES) is among the fastest growing entrepreneurship research topics. With even greater vigour, the non-scientific world of economic development agencies, administrations and policymakers has adopted the construct and applies it widely “in the field”, often lacking a solid empirical foundation and pursuing sub-optimal approaches. Improving policy instruments for EES development requires a data driven approach to first understand an EES of a specific region before making any attempts to change it. The paper showcases an empirical approach to create empirically rooted EES policy implications, contributing to closing the gap for insight in regional EES data of sub-national regions.Design/methodology/approachExploring a mixed method design, utilising quantitative Global Entrepreneurship Monitor data and combining it with EES stakeholder interviews, focusing on dysfunctions, redundancies, power asymmetries and cut off elements as well as in-layer division and public organisation behaviour.FindingsOne finding is, that regional economic development agencies (EDA), as a main public instrument to foster regional entrepreneurial activity, seem to bring the potential of a negative impact on Entrepreneurial Ecosystems bottom-up development and the ability to become self-sustained if they assume the role of competitors towards private organisations and businesses.Research limitations/implicationsAs other work on EES, the approach used in this paper only sub-optimally covers temporal system dynamics.Practical implicationsThis paper contributes to future EES support policies being rooted in an empirical foundation.Originality/valueThis paper not only progresses the empirical basis for research on regional EES but also lays the foundation for specific policy implications for a sub-national level entrepreneurial ecosystem.

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