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

Abstract

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.

The Relationship between Environmental Regulation, Green-Technology Innovation and Green Total-Factor Productivity—Evidence from 279 Cities in China

“…The third is the non-linear hypothesis, which states that environmental regulation has asymmetric effects on green total-factor productivity. A large number of scholars have argued that environmental regulations have a U-shaped effect on green total-factor productivity [ 19 , 20 , 21 , 22 ] or an inverted U-shaped effect [ 23 , 24 , 25 , 26 , 27 ]. However, Brännlund found environmental regulation had no significant impact on the productivity of manufacturing enterprises in Sweden [ 28 ].…”

Can Green Economy and Ecological Welfare Achieve Synergistic Development? The Perspective of the “Two Mountains” Theory

“…Secondly, the relationship between green economic efficiency and industries was discussed, concerning different industries [ 10 , 12 ], industrial structure and transfer [ 13 , 14 ], and industrial agglomeration [ 10 , 15 ]. Thirdly, the mutual choice and integration between the regional government and green economic efficiency were deeply discussed and studied, including the hot issue of environmental regulation [ 16 , 17 , 18 , 19 ], fiscal decentralization [ 20 ], local government competition [ 21 ], and policy uncertainties and market integration [ 22 , 23 ]. Other influencing factors of green economic efficiency studied were as follows: technology imports and innovation [ 24 , 25 , 26 ], human capital [ 27 ], urbanization [ 28 ], resource structure and consumption [ 29 , 30 , 31 ], foreign direct investment [ 32 ], digital economy [ 33 ], etc.…”

The Impact of Food Production Comparative Advantage on Green Total Factor Productivity: The Moderating Role of Environmental Regulation

“…The aforementioned "innovation compensation effect" provides substantial benefits to producers that will equal or even surpass the "compliance cost effect" of environmental restrictions. Long-term, environmental legislation fosters green technology innovation and displaces otherwise less productive and polluting producers, therefore enhancing national competitiveness [40,41]. Thus, by increasing the environmental cost of food production, environmental regulation drives producers in regions with low food production comparative advantage to gradually lose their capacity to operate sustainably and, ultimately, be driven off the market.…”