Does carbon intensity constraint policy improve industrial green production performance in China? A quasi-DID analysis

Yang, Zhenbing; Fan, Meiting; Shao, Shuai; Yang, Lili

doi:10.1016/j.eneco.2017.10.009

Cited by 267 publications

(78 citation statements)

References 54 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Furthermore, it is possible that differences in exports may be related to the industry technological level. Engaging in exporting activity can facilitate access to advanced foreign technology, management experience, and higher profits [33]. Therefore, the greater the sector's engagement in export activity, the more likely it will acquire advanced foreign technologies and achieve a higher level of technology.…”

Section: Industry Technology Levelmentioning

confidence: 99%

Environmental Regulation and Foreign Direct Investment: Evidence from China’s Eleventh and Twelfth Five-Year Plans

Ren

2020

Sustainability

View full text Add to dashboard Cite

This paper investigates environmental regulation and its impact on inward foreign direct investment (FDI) in developing countries. Based on the Chinese province-industry-level panel data in the period 2001 to 2015, we use a difference-in-difference-in-differences (DDD) model to evaluate pollution haven behavior in the context of China’s 11th and 12th Five-Year Plans SO2 emissions reduction policy. The results show that the policy leads to fewer FDI inflows to its highly-polluting industries in provinces with tougher pollution reduction targets. In addition, the environmental policy has significantly inhibited FDI inflows in provinces with stricter environmental enforcement, while investment in provinces with worse environmental enforcement is insensitive to environmental policy. These findings are consistent with pollution haven behavior. In contrast, FDI in industries with high levels of technology is not significantly influenced by the policy, whereas the FDI in industries with low levels of technology shows a negative response to environmental policy. This is overall evidence confirming a pollution haven effect (PHE), although technology differences could alleviate the negative effects of environmental regulation on inward FDI.

show abstract

Section: Industry Technology Levelmentioning

confidence: 99%

Environmental Regulation and Foreign Direct Investment: Evidence from China’s Eleventh and Twelfth Five-Year Plans

Ren

2020

Sustainability

View full text Add to dashboard Cite

show abstract

“…Weakening environmental regulation is one of the main approaches for local governments in developing countries, such as China, to attract foreign direct investment for economic development (Cai, Lu, Wu, & Yu, ; Yao et al, ). Strict environmental regulation in the short run means capital and technical restrictions, which can impede economic development, to some extent, although in the long run, strict environmental regulation may improve economic efficiency (Feiock & Stream, ; Hwang & Kim, ; Yang, Fan, Shao, & Yang, ).…”

Section: Introductionmentioning

confidence: 99%

The economic consequences of environmental regulation in China: From a perspective of the environmental protection admonishing talk policy

et al. 2020

Self Cite

View full text Add to dashboard Cite

Environmental regulation may lead to undesired economic consequences. China has tightened its environmental policies to deal with severe environmental pollution in recent years, but existing studies pay little attention to the economic consequences of China's environmental policies. Using the panel data of 211 prefecture-level and above cities in China from 2003 to 2016, we for the first time estimate the economic impact of the environmental protection admonishing talk (EPAT) policy, a newly implemented environmental regulation policy in China. We use the difference-in-differences strategy to identify the economic effects of the EPAT policy combined with the propensity score matching method to control a potential selection problem. The results show that a relative decline occurs in gross domestic product per capita in target cities after the implementation of the EPAT, and the negative impact is exerted on the secondary industry rather than the tertiary industry. Furthermore, we find that target cities respond to the environmental protection requirements of higher authorities through a one-size-fits-all approach of limiting the production activities of industrial enterprises. Meanwhile, the EPAT policy does not improve environmental efficiency. Such findings are instructive for policymakers who need to trade off economic welfare and environmental quality when formulating and implementing new environmental policies. K E Y W O R D S environmental policy, economic development, environmental regulation, difference-indifferences model, propensity score matching, China

show abstract

“…The difference in differences (DID) method is often used to evaluate a policy's effect because it can avoid the endogeneity problems of utilizing a policy as an explanatory variable. Yang et al studied the impact of the carbon intensity constraint policy (CICP) that was proposed by China in 2009 on industry and found that the industrial green production performance (denoted as GPP) in China decreased after a short increase, and the increase of industrial output was the key driving factor for improving the GPP [32]. Tu and Chen studied whether the SO2 trading system pilot could stimulate the "Porter effect" in China by controlling regional environmental regulations and other explanatory variables and found that the emissions reduction effect is not sufficient to achieve the "Porter effect" [33].…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainable Feasibility of Carbon Trading Policy on Heterogenetic Economic and Industrial Development

Zhang

et al. 2019

Sustainability

View full text Add to dashboard Cite

A carbon emission trading system (ETS) is an effective market mechanism for promoting the reduction of global greenhouse gas emissions and achieving sustainable development between the economy and the environment. To analyze the emissions reduction effect and economic effect of China’s ETS and further discuss the mechanisms of economic development differences and industrial development differences on the final effect of the policy, this study adopts the propensity score matching-difference in differences method and triple difference method. The empirical results show the following: (1) The ETS can simultaneously achieve both the emissions reduction effect and economic effect when key control variables are included. (2) The population, carbon emissions intensity and per capita GDP have significant positive impacts on carbon emissions; the environmental pollution control intensity, research structure, and research intensity have negative impacts on carbon emissions; and the capita stock, employment, and energy consumption have significant positive economic effects. (3) The ETS has a stronger inhibitory effect on the provinces with higher levels of economic and service development compared to the provinces with lower levels of economic and service development. In contrast, the policy has a weaker inhibitory effect on provinces with higher levels of industrial and construction development compared with the lower level provinces.

show abstract

Does carbon intensity constraint policy improve industrial green production performance in China? A quasi-DID analysis

Cited by 267 publications

References 54 publications

Environmental Regulation and Foreign Direct Investment: Evidence from China’s Eleventh and Twelfth Five-Year Plans

Environmental Regulation and Foreign Direct Investment: Evidence from China’s Eleventh and Twelfth Five-Year Plans

The economic consequences of environmental regulation in China: From a perspective of the environmental protection admonishing talk policy

Sustainable Feasibility of Carbon Trading Policy on Heterogenetic Economic and Industrial Development

Contact Info

Product

Resources

About