Firm size, government capacity, and regional environmental regulation: Theoretical analysis and empirical evidence from China

Ping, Lei; Tian, Xinyu; Huang, Qi; He, Dayi

doi:10.1016/j.jclepro.2017.06.166

Cited by 38 publications

(22 citation statements)

References 26 publications

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“…In addition, the measurement of pollutant emission intensity, wastewater discharge rate, GDP/energy consumption [45,46] selected from the perspective of regulation effect. Specific environmental regulatory intensity measurement indicators include: (1) the promulgation of environmental regulation policy [47]; (2) the ratio of pollution control investment to the total cost of the enterprise or the production value of the enterprise [48]; (3) number of inspections and supervision of enterprises by government regulatory bodies [49]; (4) collection of sewage charges by environmental regulation institutions [50]; (5) operating costs of pollution control facilities [51]; (6) total investment in industrial pollution control and the proportion of main operating costs and industrial added value of industrial enterprises above scale [52,53]; (7) pollution control cost per industrial output value [54][55][56]; (8) per capita income level [57]; (9) changes of pollutant emissions under environmental regulation [58]; and (10) ratio of pollutant emissions to regional industrial gross domestic product [59]. This paper will measure the environmental regulation variables from the perspective of the cost of environmental regulation costs to calculate the operating costs of pollution control facilities/the main business income of industrial enterprises.…”

Section: Independent Variables Measurementmentioning

confidence: 99%

Environmental Regulation, Government R&D Funding and Green Technology Innovation: Evidence from China Provincial Data

et al. 2018

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Abstract:The "environmental pollution-economic development" circle is a problem in the process of national sustainable development. As a complex concept of environmental protection and technology innovation, green technology innovation is the key to cracking this strange circle. This paper divides green technology innovation into green product innovation and green process innovation and measures green technology innovation based on the perspective of energy saving and emission reduction. Furthermore, we examine the effects of environmental regulation and government R&D funding on green technology innovation. The empirical findings are as follows: (1) from the dynamic point of view, we test whether there is a significant "U-shaped" relationship between environmental regulation and green technological innovation, and we find there exists an "inflection point" in the role of environmental regulation in green technology innovation, and China is at the stage of inhibition before the "inflection point"; (2) direct government funding and tax incentives can promote green technology innovation, but the promotion of government tax incentives to green technology innovation is not significant; (3) the interaction between environmental regulation and government R&D will promote green product innovation and inhibit green process innovation, which is closely related to the imbalance of environmental regulation intensity in energy saving and emission reduction. In addition, this paper also gives out three kinds of control variables (the level of regional development, the proportion of the regional manufacturing industry, and the development level of regional export-oriented economy) and presents their effects on green technology innovation.

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Section: Independent Variables Measurementmentioning

confidence: 99%

Environmental Regulation, Government R&D Funding and Green Technology Innovation: Evidence from China Provincial Data

et al. 2018

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“…The appropriate use of these indicators has practical implications for formulating proposals that impact environmental regulation modifications and adjustments. They can also work as a source of information for supporting environmental laws and regulations that have a more significant impact on environmental protection and pollution reduction (Lei et al, 2017).…”

Section: Theoretical Framework To Measure Boermentioning

confidence: 99%

Business‐oriented environmental regulation: Measurement and implications for environmental policy and business strategy from a sustainable development perspective

2020

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Business‐oriented environmental regulation is expected to have a fundamental role in mitigating the adverse effects of human activity on the natural environment. However, its effectiveness and efficiency are not well established. A systematic literature review reveals validity and reliability problems in the measurement of business‐oriented environmental regulation. From a sustainable development perspective, we develop a theoretical framework that aims to enhance the measurement and assessment of this kind of regulation. Our theoretical framework proposes that the goals of business‐oriented environmental regulation must articulate a measurement system in a 3 × 3 matrix: three measurement levels (stringency, response, and outcome—in this cause–effect order) and three sustainability dimensions (environmental, social, and economic—in this constraint order). For each cell, we propose a combination of objective and subjective indicators. This theoretical framework expands existing approaches to business‐oriented environmental regulation measurement by integrating a sustainable development perspective into a measurement framework in a structured theory‐driven manner. Not only will this measurement system be useful for improving environmental policy, but it will also allow companies to improve their business strategy and come closer to complying with environmental regulations in order to effectively contribute to solutions for current environmental problems and help achieve a sustainable development.

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“…Given their differences in terms of research methods and objectives, these empirical studies have failed to provide conclusive results regarding the relationship between environmental regulations and economic efficiency. 18,19 From the perspective of economic development, industries cannot change their modes of production and reduce resource consumption within a short time frame, thus, there is a reliance on government environmental regulations to impose compulsory pollution control measures.…”

Section: Economic Efficiency Considerationsmentioning

confidence: 99%

“…47 Today, economics-based environmental regulations are increasingly becoming the norm with respect to development, given their inherent advantages vis-a`-vis cost and efficiency measurement in industrial production systems. 19,39 Therefore, in line with Aiken and Pasurk (2003) and Huang et al, 45 and given the considerations in 'Environmental regulation considerations' subsection, we applied a double set of environmental regulation tools to measure the effect of environmental regulations on economic efficiency and technological innovation in the current study context. 1 The following points explain the selection of these two types of environmental regulations.…”

Section: Definitions Of the Two Types Of Environmental Regulationsmentioning

confidence: 99%

The effects of two types of environmental regulations on economic efficiency: An analysis of Chinese industries

Wang

2018

Energy & Environment

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Improvements to industrial economic efficiency are important in coordinating China's economic development and its environmental protections; furthermore, an effective environmental regulation system is a crucial driver of both industrial economic efficiency and technological innovation. Using panel data pertaining to China's 12 characteristic industries over the 2008-2015 period, this study divides environmental regulations into two types -namely, cost-oriented environmental regulations (ER1) and investment-oriented environmental regulations (ER2). This study employs a slacks-based method to calculate the economic efficiency of different groups of industries, and it applies a regression model to test the effects of these two types of environmental regulations on economic efficiency and technological innovation among China's 12 key industries. Our research results offer three distinct findings. (1) These two types of environmental regulations have opposite effects on industrial efficiency and technological innovation: ER1 have significant and positive effects on economic efficiency and technological innovation, but ER2 have negative effects on them. (2) The results with respect to various groups of industries differ widely, with lowefficiency industries sustaining a more positive influence from environmental regulations and technological innovation than high-efficiency ones. (3) Technological innovation effectively promotes the economic efficiency of industries and tends to have a more significant impact on relatively lowefficiency industries. These findings indicate that the effects of different types of environmental regulations differ across industries. Finally, to optimize and adjust these environmental regulation tools, this study makes policy recommendations for various industries.

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Firm size, government capacity, and regional environmental regulation: Theoretical analysis and empirical evidence from China

Cited by 38 publications

References 26 publications

Environmental Regulation, Government R&D Funding and Green Technology Innovation: Evidence from China Provincial Data

Environmental Regulation, Government R&D Funding and Green Technology Innovation: Evidence from China Provincial Data

Business‐oriented environmental regulation: Measurement and implications for environmental policy and business strategy from a sustainable development perspective

The effects of two types of environmental regulations on economic efficiency: An analysis of Chinese industries

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