Environmental regulation and green productivity growth: Empirical evidence on the Porter Hypothesis from OECD industrial sectors

Wang, Yun; Sun, Xun; Guo, Xu

doi:10.1016/j.enpol.2019.06.016

Cited by 437 publications

(181 citation statements)

References 31 publications

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“…Costantini and Mazzanti [6] found that the innovation offset effect prevented stringent environmental regulations from weakening the international competitiveness of the manufacturing industry across European Union countries. Wang et al [13] also drew a similar conclusion using industrial data of Organization for Economic Cooperation and Development (OECD) countries; however, they also found that the stringency of environmental regulation is subject to a certain threshold, beyond which the cost effect exceeds the innovation offset effect.…”

Section: Environmental Regulation and Export Performancementioning

confidence: 80%

Environmental Regulation, Technological Innovation, and Export Competitiveness: An Empirical Study Based on China’s Manufacturing Industry

Liu

Xie

2020

IJERPH

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A current and universal challenge, particularly in developing nations, is the establishment of effective environmental regulation policies that protect the ecological environment without adversely affecting the international competitiveness of the domestic manufacturing industry. To deal with this dilemma, this study investigates the export competitiveness of China’s manufacturing industry from the viewpoint of export value added. The Porter hypothesis is applied for an empirical investigation of the effect of environmental regulation on export competitiveness and to determine the presence of intra-industry heterogeneity. Furthermore, this study seeks to understand the mechanisms through which environmental regulation affects export competitiveness by exploring the two main approaches to technological innovation. The findings reveal that environmental regulation has a promotion effect of approximately 2% on the export competitiveness of China’s manufacturing industry; however, this effect is non-linear and displays a “U-shaped” tendency, indicating that certain prerequisites must be fulfilled to validate the Porter hypothesis. In addition, the effect of environmental regulation displays significant intra-industry heterogeneity, which is evident primarily in heavily polluting sub-industries and to a lesser extent in moderately polluting sub-industries but insignificant in lightly polluting sub-industries. Environmental regulation also differs significantly in the mechanisms through which it affects different approaches to technological innovation. Independent research and development is affected by environmental regulation through the compliance cost effect, which limits export competitiveness, while technology introduction is affected by the innovation offset effect, which favors export competitiveness. These findings offer political implications for the sustainable development of the ecological environment and foreign trade.

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Section: Environmental Regulation and Export Performancementioning

confidence: 80%

Environmental Regulation, Technological Innovation, and Export Competitiveness: An Empirical Study Based on China’s Manufacturing Industry

Liu

Xie

2020

IJERPH

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“…According to the result in the current work, the characteristics between the China and Europe model are summarized and listed in Table 1, compared to that in previous work. In Europe, green productivity growth is the strategy, which is achieved via stringent environmental regulation policy [28,29]. However, the compliance cost effect would be high to maintain economic growth.…”

Section: Discussionmentioning

confidence: 99%

“…Industrial structure green adjustment, green total factor productivity Green productivity growth [29,33] Policy Market-based environmental regulation Stringent environmental regulation policy [3,29] Industrial structure The service sector is developing rapidly, while the proportion of industry is still high Dominated by service sector [36,37] Energy Energy Efficiency, Innovation of conversion technology in fossil fuel energy Renewable energy, Solar, Wind . .…”

Section: Strategymentioning

confidence: 99%

Evolution of Green Industrial Growth between Europe and China based on the Energy Consumption Model

2019

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Greenhouse gas (GHG) emissions are an important factor in the evaluation of green industrial growth, when low GHG emissions along with high industrial growth are expected. In this paper, the improvement of sustainable development of industry in China (2007–2015) was investigated via analysis of the relationships between the GHG emissions and energy consumption in comparison to European countries. A hierarchical cluster analysis (HCA) was conducted to distinguish industrial growth with GHG emission and energy consumption structures. The results of this research indicated that green industrial growth in Europe had a negative annual rate of GHG emissions. This contributed to the ratio of renewable energy consumption increasing to a maximum of 33% and an average of 16%. In comparison, the GHG emissions in China increased at a rate of 50% to 77% in the main industrial provinces since 2007 with their rapid industrial growth. The rate of GHG emissions decreased after 2012, which was 7% or less than the rate of emissions in the industrial provinces. Contrary to in Europe, the decreasing rate of GHG emissions in China was attributed to the improvement of fossil energy efficiency, as renewable energy consumption was less than 10% in most industrial provinces. Our data analysis identified that the two different energy consumption strategies improved green industrial growth in Europe and China, respectively. Our data analysis identified the two different energy consumption strategies employed by Europe and China, each of which promoted green industrial growth in the corresponding areas. We concluded that China achieved green industrial growth through an increase in energy efficiency through technology updates to decrease GHG emissions, which we call the “China Model.” The “Europe Model” proved to be quite different, having the core characteristic of increasing renewable energy use.

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“…Hashmi et al [29] examined the effects of environmental regulation and innovation on the carbon emission reduction of OECD countries during the period of 1999-2014. Wang et al [30] used panel data of OECD countries' industrial sectors to analyze the stringency of environmental regulation policies and measure green productivity growth employing an extended SBM directional distance function approach. The results showed that the Porter hypothesis was validated, which is that the environmental policy had a positive impact on green productivity growth and the impact turned to adverse when the environmental regulation policy was stringent over a certain level, as the compliance cost effect was higher than innovation offset effect.…”

Section: Environmental Regulation and Technical Innovationmentioning

confidence: 99%

Analysis of Coordinated Development of Energy and Environment in China’s Manufacturing Industry under Environmental Regulation: A Comparative Study of Sub-Industries

et al. 2019

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In order to explore the impact of environmental regulation on the coordinated development of energy and the environment with the background of governance transition, we propose a three-stage integrated approach and use the panel data of China’s manufacturing industry 27 sub-sectors during the period of 2006–2015. In the first stage, according to the environmental pollution intensity, the manufacturing industry is divided into heavily polluting industry, moderately polluting industry, and lightly polluting industry. The second stage is employed the slacks-based measure (SBM)-undesirable method to study the sub-industries’ green energy-environmental efficiency under different environmental pollution intensities. Besides, the dynamic changes of technical innovation and efficiency among different industries are analyzed through the Malmquist productivity index. For the purpose of investigating the transmission mechanism of the Porter’s hypothesis and exploring the compound effects of environmental regulation and governance transition on green development, in the third stage, we use the panel data analysis to conduct more in-depth research on the relationship between environmental regulation, governance transition, and technical innovation. Results show that the highest average green energy-environmental efficiency is lightly polluting industry, which is 0.52, followed by the heavily polluting industry at 0.40, and the lowest is the moderately polluting industry, which is 0.32. By decomposing total factor productivity, heavily polluting industry is at the forefront of technical innovation. Panel data analysis results indicate that investment in research and development and governance transition could promote the growth of total factor productivity for manufacturing.

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Environmental regulation and green productivity growth: Empirical evidence on the Porter Hypothesis from OECD industrial sectors

Cited by 437 publications

References 31 publications

Environmental Regulation, Technological Innovation, and Export Competitiveness: An Empirical Study Based on China’s Manufacturing Industry

Environmental Regulation, Technological Innovation, and Export Competitiveness: An Empirical Study Based on China’s Manufacturing Industry

Evolution of Green Industrial Growth between Europe and China based on the Energy Consumption Model

Analysis of Coordinated Development of Energy and Environment in China’s Manufacturing Industry under Environmental Regulation: A Comparative Study of Sub-Industries

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