Convergence analysis of environmental efficiency from the perspective of environmental regulation: evidence from China
Abstract
The aim of this paper is to analyze the impact of environmental regulation on regional environmental efficiency convergence using the fixed effects model and threshold regression model. The results show that the differences in environmental efficiency have a convergence trend in China, as well as in the eastern, central and western regions. The effect of environmental regulation on regional environmental efficiency is inhibition first and then promotion, research and development investment and outward foreign direct investment have a positive transmission effect; when environmental regulation intensity exceeds a certain threshold, the growth rate of environmental efficiency in the central and western regions will be significantly higher than that in the eastern regions.
Keyword : environmental regulation, environmental efficiency, outward foreign direct investment, convergence
How to Cite
Feng, S., Wu, H., Li, G., Li, L., & Zhou, W. (2020). Convergence analysis of environmental efficiency from the perspective of environmental regulation: evidence from China. Technological and Economic Development of Economy, 26(5), 1074-1097. https://doi.org/10.3846/tede.2020.13233
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Chen, Z., Kahn, M. E., Liu, Y., & Wang, Z. (2018b). The consequences of spatially differentiated water pollution regulation in China. Journal of Environmental Economics and Management, 88(3), 468–485. https://doi.org/10.1016/j.jeem.2018.01.010
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China Environmental Statistics Yearbook. (2009–2018). https://data.cnki.net/yearbook/Single/N2019030257
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China Energy Statistics Yearbook. (2009–2018). https://data.cnki.net/yearbook/Single/N2019080025
Churchill, S. A., Inekwe, J., & Ivanovski, K. (2018). Conditional convergence in per capita carbon emissions since 1900. Applied Energy, 228(10), 916–927. https://doi.org/10.1016/j.apenergy.2018.06.132
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Duman, Y. S., & Kasman, A. (2018). Environmental technical efficiency in EU member and candidate countries: A parametric hyperbolic distance function approach. Energy, 147(3), 297–307. https://doi.org/10.1016/j.energy.2018.01.037
Fredriksson, P. G., & Millimet, D. L. (2002). Is there a “California effect” in US environmental policy making. Regional Science and Urban Economics, 32(6), 737–764. https://doi.org/10.1016/S0166-0462(01)00096-5
Gehrsitz, M. (2017). The effect of low emission zones on air pollution and infant health. Journal of Environmental Economics and Management, 83(5), 121–144. https://doi.org/10.1016/j.jeem.2017.02.003
Gray, W. B., & Shadbegian, R. J. (2003). Plant vintage, technology, and environmental regulation. Journal of Environmental Economics & Management, 46(3), 384–402. https://doi.org/10.1016/S0095-0696(03)00031-7
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Hao, Y., Deng, Y., Lu, Z., & Chen, H. (2018). Is environmental regulation effective in China? Evidence from city-level panel data. Journal of Cleaner Production, 188(7), 966–976. https://doi.org/10.1016/j.jclepro.2018.04.003
Hering, L., & Poncet, S. (2014). Environmental policy and exports: Evidence from Chinese cities. Journal of Environmental Economics and Management, 68(2), 296–318. https://doi.org/10.1016/j.jeem.2014.06.005
Herrerias, M. J. (2012). World energy intensity convergence revisited: A weighted distribution dynamics approach. Energy Policy, 49(10), 383–399. https://doi.org/10.1016/j.enpol.2012.06.044
Jin, W., Zhang, H., Liu, S., & Zhang, H. (2019). Technological innovation, environmental regulation, and green total factor effciency of industrial water resources. Journal of Cleaner Production, 211(6), 61–69. https://doi.org/10.1016/j.jclepro.2018.11.172
Jin, Y., Andersson, H., & Zhang, S. (2016). Air pollution control policies in China: A retrospective and prospects. International Journal of Environmental Research & Public Health, 12(13), 1219. https://doi.org/10.3390/ijerph13121219
Kaneko, S., & Managi, S. (2004). Environmental productivity in China. Economics Bulletin, 17(2), 1–10.
Li, L., & Hu, J. (2012). Ecological total-factor energy efficiency of regions in China. Energy Policy, 46(3), 216–224. https://doi.org/10.1016/j.enpol.2012.03.053
Li, N., Zhang, X., Shi, M., & Hewings, G. (2019). Does China’s air pollution abatement policy matter? An assessment of the Beijing-Tianjin-Hebei region based on a multi-regional CGE model. Energy Policy, 127(4), 213–227. https://doi.org/10.1016/j.enpol.2018.12.019
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Lu, X., & Xu, C. (2019). The difference and convergence of total factor productivity of inter-provincial water resources in China based on three- stage DEA-Malmquist index model. Sustainable Computing: Informatics and Systems, 22(6), 75–83. https://doi.org/10.1016/j.suscom.2019.01.019
Ivanovski, K., Churchill, S. A., & Smyth, R. (2018). A club convergence analysis of per capita energy consumption across Australian regions and sectors. Energy Economics, 76(11), 519–531. https://doi.org/10.1016/j.eneco.2018.10.035
Maximilian, A., & Kellogg, R. (2011). Clearing the air? The effects of gasoline content regulation on air quality. American Economic Review, 101(6), 2687–2722. https://doi.org/10.1257/aer.101.6.2687
Miao, C., Fang, D., Sun, L., Luo, Q., & Yu, Q. (2018). Driving effect of technology innovation on energy utilization efficiency in strategic emerging industries. Journal of Cleaner Production, 170(1), 1177–1184. https://doi.org/10.1016/j.jclepro.2017.09.225
Miao, Z., Baležentis, T., Tian, Z., Shao, S., Geng, Y., & Wu, R. (2019). Environmental performance and regulation effect of China’s atmospheric pollutant emissions: Evidence from “Three Regions and Ten Urban Agglomerations”. Environmental and Resource Economics, 74, 211–242. https://doi.org/10.1007/s10640-018-00315-6
National Bureau of Statistics of China. (n.d.). http://www.stats.gov.cn/tjsj/ndsj/
National Bureau of Statistics of China. (2017). China Statistical Yearbook 2017. http://www.stats.gov.cn/tjsj/ndsj/2017/indexch.htm
Palmer, K., Oates, W. E., & Portney, P. (1995). Tightening environmental standards: the benefit-cost or the no-cost paradigm. Journal of Economic Perspectives, 9(4), 119–132. https://doi.org/10.1257/jep.9.4.119
Pan, X., Ai, B., Li, C., Pan, X., & Yan, Y. (2019). Dynamic relationship among environmental regulation, technological innovation and energy efficiency based on large scale provincial panel data in China. Technological Forecasting and Social Change, 144(7), 428–435. https://doi.org/10.1016/j.techfore.2017.12.012
Peng, B., Tu, Y., Elahi, E., & Wei, G. (2018). Extended Producer Responsibility and corporate performance: Effects of environmental regulation and environmental strategy. Journal of Environmental Management, 218(7), 181–189. https://doi.org/10.1016/j.jenvman.2018.04.068
Piao, S., Li, J., & Ting, C. (2019). Assessing regional environmental efficiency in China with distinguishing weak and strong disposability of undesirable outputs. Journal of Cleaner Production, 227(22), 748–759. https://doi.org/10.1016/j.jclepro.2019.04.207
Porter, M. E. (1991). Toward a dynamic theory of strategy. Strategic Management Journal, 12(S2), 95– 117. https://doi.org/10.1002/smj.4250121008
Porter, M. E., & Linde, C. (1995). Toward a new conception of the environment competitiveness relationship. Journal of Economic Perspectives, 9(5), 97–118. https://doi.org/10.1257/jep.9.4.97
Ren, S., Li, X., Yuan, B., Li, D., & Chen, X. (2018). The effects of three types of environmental regulation on eco-efficiency: A cross-region analysis in China. Journal of Cleaner Production, 173(4), 245–255. https://doi.org/10.1016/j.jclepro.2016.08.113
Rubashkina, Y., Galeott, M., & Verdolini, E. (2015). Environmental regulation and competitiveness: empirical evidence on the Porter Hypothesis from European manufacturing sectors. Energy Policy, 83, 288–300. https://doi.org/10.1016/j.enpol.2015.02.014
Shi, X., & Xu, Z. (2018). Environmental regulation and firm exports: evidence from the eleventh FiveYear Plan in China. Journal of Environmental Economics and Management, 89(2), 187–200. https://doi.org/10.1016/j.jeem.2018.03.003
Song, M., An, Q., Zhang, W., Wang, Z., & Wu, J. (2012). Environmental efficiency evaluation based on data envelopment analysis: A review. Renewable and Sustainable Energy Reviews, 16(7), 4465–4469. https://doi.org/10.1016/j.rser.2012.04.052
Stern, D. I. (2012). Modeling international trends in energy efficiency. Energy Economics, 34(6), 2200– 2208. https://doi.org/10.1016/j.eneco.2012.03.009
Sueyoshi, T., & Yuan, Y. (2017). Social sustainability measured by intermediate approach for DEA environmental assessment: Chinese regional planning for economic development and pollution prevention. Energy Economics, 66(8), 154–166. https://doi.org/10.1016/j.eneco.2017.06.008
Suh, S., & Huppes, G. (2005). Methods for Life Cycle Inventory of a product. Journal of Cleaner Production, 13(7), 687–697. https://doi.org/10.1016/j.jclepro.2003.04.001
Tian, G., Miao, C., Hu, Z., & Miao, J. (2018). Environmental regulation, local protection and the spatial distribution of pollution-intensive industries in China. Acta Geographica Sinica, 73(10), 1954–1969.
Wang, X., & Shao, Q. (2019). Non-linear effects of heterogeneous environmental regulations on green growth in G20 countries: Evidence from panel threshold regression. Science of The Total Environment, 660(14), 1346–1354. https://doi.org/10.1016/j.scitotenv.2019.01.094
Wang, X., Zhang, C., & Zhang, Z. (2019). Pollution haven or porter? The impact of environmental regulation on location choices of pollution-intensive firms in China. Journal of Environmental Management, 248(20), 109248. https://doi.org/10.1016/j.jenvman.2019.07.019
Wang, Y., & Shen, N. (2016). Environmental regulation and environmental productivity: The case of China. Renewable and Sustainable Energy Reviews, 62(9), 758–766. https://doi.org/10.1016/j.rser.2016.05.048
Wang, Y., & Yao, Y. (2001). Source of China’s economic growth, 1952–1999: incorporating human capital accumulation. China Economic Review, 14(1), 32–52. https://doi.org/10.1016/S1043-951X(02)00084-6
Wolff, H. (2014). Keep your clunker in the suburb: Low-emission zones and adoption of green vehicles. The Economic Journal, 124(578), 481–512. https://doi.org/10.1111/ecoj.12091
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