Does the Clean Air Action Really Affect Labor Demand in China?

2022 ◽  
Vol 30 (6) ◽  
pp. 0-0
Keyword(s):  
Environmental Regulation ◽  
Labor Demand ◽  
Economic Cost ◽  
Industrial Sector ◽  
Mediating Effect ◽  
Mechanism Analysis ◽  
Firm Level ◽  
Stage Of Development ◽  
Level Data ◽  
Clean Air

How to balance resources, environment, and economic growth to achieve sustainable development is a challenge for developing countries. In 2013, China implemented a high-stringency environmental regulation—the Clean Air Action, which has effectively controlled air pollution. To explore the economic cost of environmental regulation, this paper investigates the policy effect on employment in the industrial sector. However, there are still controversies about whether environmental regulations impact employment. Based on the city-level data and firm-level data, this study applied a quasi-natural experiment for policy evaluation and used the mediating effect model for mechanism analysis. The difference-in-difference estimation results show that environmental regulation has a significant impact on employment. The mechanism analysis verifies that output adjustment, capital input, and green innovation are the main channels, by which environmental regulation distresses employment. The findings of this paper could be extended to other countries at a similar stage of development.

Watering Down Environmental Regulation in China*

2020 ◽  
Vol 135 (4) ◽  
pp. 2135-2185 ◽  
Author(s):  
Guojun He ◽  
Shaoda Wang ◽  
Bing Zhang
Keyword(s):  
Water Quality ◽  
Environmental Regulation ◽  
Spatial Regression ◽  
Oxygen Demand ◽  
Economic Cost ◽  
Water Quality Monitoring ◽  
Data Sets ◽  
Firm Level ◽  
Emission Estimate ◽  
The Government

Abstract This article estimates the effect of environmental regulation on firm productivity using a spatial regression discontinuity design implicit in China's water quality monitoring system. Because water quality readings are important for political evaluations and the monitoring stations only capture emissions from their upstream regions, local government officials are incentivized to enforce tighter environmental standards on firms immediately upstream of a monitoring station, rather than those immediately downstream. Exploiting this discontinuity in regulation stringency with novel firm-level geocoded emission and production data sets, we find that immediate upstream polluters face a more than 24% reduction in total factor productivity (TFP), and a more than 57% reduction in chemical oxygen demand emissions, as compared with their immediate downstream counterparts. We find that the discontinuity in TFP does not exist in nonpolluting industries, only emerged after the government explicitly linked political promotion to water quality readings, and was predominantly driven by prefectural cities with career-driven leaders. Linking the TFP estimate with the emission estimate, a back-of-the-envelope calculation indicates that China's water regulation efforts between 2000 and 2007 were associated with an economic cost of more than 800 billion Chinese yuan.

scholarly journals TACIT KNOWLEDGE AND FIRM PERFORMANCE RELATIONSHIP. THE ROLE OF PRODUCT INNOVATION AND THE FIRM LEVEL CAPABILITIES

2019 ◽  
Vol 20 (2) ◽  
pp. 330-350 ◽  
Author(s):  
M. Ángeles López-Cabarcos ◽  
Suresh Srinivasan ◽  
Sérgio Göttling-Oliveira-Monteiro ◽  
Paula Vázquez-Rodríguez
Keyword(s):  
Firm Performance ◽  
Tacit Knowledge ◽  
Product Innovation ◽  
Dynamic Capabilities ◽  
Industrial Sector ◽  
Mediating Effect ◽  
Organizational Capabilities ◽  
Firm Level ◽  
Moderator Effect ◽  
Knowledge Resources

Based on knowledge-based theory of organizational capabilities and dynamic capabilities theory, this paper tries to establish the linkages between tacit knowledge resources, its integration into firm level capabilities, product innovation and firm performance. In this way, the paper analyses the relationships between some of the most relevant variables to the organizations in order to remain competitive. The conceptual model is tested using a sample of organizations in the industrial sector, using SEM and hierarchical regression analysis. Results show a positive relationship between tacit knowledge and firm performance, tacit knowledge and product innovation, and product innovation and firm performance. A partial mediating effect of product innovation on the tacit knowledge firm performance relationship is established. Also, technical capabilities have a moderator effect on tacit knowledge firm performance relationship. At the end of the paper managerial implications are commented, as well directions for future studies.

scholarly journals Heterogenous Energy Consumption Behavior by Firm Size: Evidence from Korean Environmental Regulations

2019 ◽  
Vol 11 (11) ◽  
pp. 3226
Author(s):  
Jaeseok Lee ◽  
Jongmin Yu
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Ghg Emissions ◽  
Industrial Sector ◽  
Vector Model ◽  
Energy Costs ◽  
Energy Usage ◽  
Firm Level ◽  
Consumption Behavior ◽  
Level Data

We analyze the interdependencies between energy usage, energy costs, renewable energy shares, economic growth, and greenhouse gas (GHG) emissions in the Korean industrial sector by employing a time-series panel vector model. Although the topic itself about has been classic one, our research to investigate diverse dynamics between large and small-mid size businesses using micro-firm level data is the first study in literature. Since firms with different sizes are put in different policy circumstances, the aggregate-level data analysis could possibly disregard the effectiveness of environmental & renewable policies and underestimate the policy sensitivity of firms. Our findings demonstrate that the increase in energy consumption in larger firms has a greater impact on their energy costs and GHG emissions than for small and medium-sized enterprises (SMEs). Moreover, it has a significant effect on GDP. Also, the increase in renewable energy shares only has a significant influence on the energy consumption and GHG emission levels of large firms.

scholarly journals Low-carbon governance, fiscal decentralization and sulfur dioxide emissions: Evidence from a quasi-experiment with Chinese heavy pollution enterprises

2022 ◽  
Author(s):  
Ping Guo ◽  
Jin Li ◽  
Jinsong Kuang ◽  
Yifei Zhu ◽  
Renrui Xiao ◽  
...  
Keyword(s):  
Sulfur Dioxide ◽  
Environmental Governance ◽  
Fiscal Decentralization ◽  
Mediating Effect ◽  
Low Carbon ◽  
So2 Emissions ◽  
Firm Level ◽  
Sulfur Dioxide Emissions ◽  
Level Data ◽  
Heavy Pollution

Abstract This paper investigates the effects of enterprise environmental governance under low-carbon pilot policies in China with a difference in differences (DID) design. In examining the development of these policies, we focus on exploring their effects on sulfur dioxide emissions of heavily polluting enterprises based on prefectural city- and firm-level data from 2003-2014. Overall, the policies significantly increased enterprise SO2 emissions, and the underlying reason being that investments in CO2 control crowded out investment in SO2 control in enterprises in low-carbon pilot regions. We also find that the implementation of low-carbon pilot policies resulted in greater SO2 emissions from state-owned enterprises and enterprises in western regions than from non-state-owned enterprises and those in eastern regions. It is further found that fiscal decentralization and the associated mediating effect of market segmentation promote enterprises' CO2 control and inhibit their SO2 control. This study helps us re-examine the overall environmental effects of low-carbon policies and has implications for the revision and improvement of environmental governance policies in developing countries.

scholarly journals US Environmental Regulation and FDI: Evidence from a Panel of US-Based Multinational Firms

2010 ◽  
Vol 2 (3) ◽  
pp. 158-189 ◽  
Author(s):  
Rema Hanna
Keyword(s):  
Foreign Investment ◽  
Multinational Firms ◽  
Clean Air Act ◽  
Econometric Models ◽  
Substantial Variation ◽  
Firm Level ◽  
Level Data ◽  
Regulated Firms ◽  
Firm Level Data ◽  
Clean Air

This paper measures the response of US-based multinationals to the Clean Air Act Amendments (CAAA). Using a panel of firm-level data over the period 1966–1999, I estimate the effect of regulation on a multinational's foreign production decisions. The CAAA induced substantial variation in the degree of regulation faced by firms, allowing for the estimation of econometric models that control for firm-specific characteristics and industrial trends. I find that the CAAA caused regulated multinational firms to increase their foreign assets by 5.3 percent and their foreign output by 9 percent. Heavily regulated firms did not disproportionately increase foreign investment in developing countries. (JEL F23, K32, L51, Q52, Q53, Q58)

The effects of organizational isomorphism on innovation performance through knowledge search in industrial cluster

2017 ◽  
Vol 11 (2) ◽  
pp. 209-229 ◽  
Author(s):  
Hui Zhang ◽  
Baoliang Hu
Keyword(s):  
Structural Equation ◽  
Innovation Performance ◽  
Mediating Effect ◽  
Firm Level ◽  
Mediation Effects ◽  
Content Type ◽  
Positive Effects ◽  
Level Data ◽  
Knowledge Search ◽  
Mimetic Isomorphism

Purpose This paper aims to identify the relationships of both organizational isomorphism and knowledge search with the innovation performance of cluster enterprises. It also specifies the mechanism by which organizational isomorphism affects innovation performance, through knowledge search. Design/methodology/approach Firm-level data were collected with questionnaires distributed to cluster enterprises in Zhejiang Province, China, which produced 165 usable responses for the analysis. Both multiple regression analyses and structural equation modelling were used to test the hypotheses. Findings Normative isomorphism and mimetic isomorphism have inverse U-shaped effects on the innovation performance of cluster enterprises, as does exploratory knowledge search. Exploitative knowledge search and the balance between two types of knowledge search have positive effects on the innovation performance of cluster enterprises; exploratory and exploitative knowledge searches exert partial mediation effects between the organizational isomorphism and innovation performance of cluster enterprises. The mediating effect of knowledge search transforms the inverse U-shaped effect of normative isomorphism and mimetic isomorphism on innovation performance into a positive effect. Originality/value This study provides new insights into the effects of organizational isomorphism on innovation performance by showing the indirect influence of organizational isomorphism in clusters. The study proposes a strategic logic of moderate isomorphism, clarifies the innovative effect of different knowledge search modes and reveals the construction and management mechanisms of organizational isomorphism and knowledge search strategy of firms in clusters.

scholarly journals The mediating effect of firm’s R&D collaborations on their innovative performance

2020 ◽  
Vol 71 (5) ◽  
pp. 493-511
Author(s):  
Michael Amponsah Odei ◽  
Samuel Amponsah Odei
Keyword(s):  
Structural Equation ◽  
Equation Model ◽  
Innovation Performance ◽  
Mediating Effect ◽  
Knowledge Sources ◽  
Community Innovation Survey ◽  
Firm Level ◽  
Innovative Performance ◽  
Mediating Role ◽  
Level Data

There is the need for firms to engage in R&D collaborations with different partners because these collaborations enable them to acquire new knowledge and technologies thereby increasing their innovation capabilities. These innovative collaborations are known to increase firm’s innovative performance, but the extent of the increase is not known. The main objective of this paper is to empirically examine the mediating role of firm’s R&D collaborations and its influence on their innovative performance. To fulfil this objective, we used the Structural Equation Model and firm-level data from the Eurostat Community Innovation Survey (2010-2012). Our results have demonstrated that firms R&D collaborations was a statistically significant determinant that played a full mediating role in contributing to increase firm’s innovation performance by 27%. Our results have demonstrated that firm’s innovation collaborations rather had a weaker effect on their innovation performance. Additionally, knowledge sources also influenced firm’s collaborations, it had a stronger effect. Conversely, knowledge sources were not statistically significant in influencing firm’s innovation performance, it rather had an unsubstantial effect on innovation performance.

scholarly journals The Deterrence Effect of a Penalty for Environmental Violation

2019 ◽  
Vol 11 (15) ◽  
pp. 4226 ◽  
Author(s):  
Yun Wang ◽  
Yanxi Li ◽  
Zhuang Ma ◽  
Jinbo Song
Keyword(s):  
Environmental Regulation ◽  
Industrial Sector ◽  
Firm Level ◽  
Peer Effect ◽  
Listed Firms ◽  
Legal Punishment ◽  
Target Firms ◽  
Peer Firms ◽  
Deterrence Effect ◽  
High Level

The response to the penalty for an environmental violation on the firm level is a matter of reactive corporate environmental practices, about which the existence of a penalty is critical for environmental public policy. We propose that a penalty acts as a deterrence signal to enhance the perceived threat of legal punishment and the peer effect serves as the path through which peer firms learn from target firms. Based on the peer effect among firms and the deterrence effect in criminal economics, we investigated whether and how the peer firm responds to the penalty for environmental violation of target firms in the same industrial sector. Using samples of Chinese listed firms from 2008 to 2015, this paper finds that the penalty for the target firms can increase the peer firms’ environmental investment, and compared to the sample with low-level environmental regulation, the increase in the sample with high-level environmental regulation is more significant. These findings suggest that a penalty for target firms has a deterrence effect on peer firms and the environmental regulation strengthens the above deterrence effect. This is expected to help both theorists and practitioners achieve a better understanding of the implementation of a penalty for an environmental violation.

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