Do Environmental Regulations Improve Industrial Efficiency? | Zendy

Peng Li | Zendy; Lili Shi | Zendy

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Do Environmental Regulations Improve Industrial Efficiency?

Author(s) -

Peng Li,

Lili Shi

Publication year - 2021

Publication title -

advances in civil engineering

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.379

H-Index - 25

eISSN - 1687-8094

pISSN - 1687-8086

DOI - 10.1155/2021/1979353

Subject(s) - environmental regulation , environmental governance , econometrics , ordinary least squares , productivity , government (linguistics) , variables , benchmark (surveying) , regression analysis , data envelopment analysis , environmental science , corporate governance , environmental economics , business , economics , natural resource economics , statistics , mathematics , geography , economic growth , linguistics , philosophy , finance , geodesy

This study was based on research on the impact of environmental regulation on industrial efficiency in 30 provinces from 2005 to 2017 in China. For the explained variables, the industrial efficiency of the DEA-Malmquist method was utilized for the decomposition and measurement of overall factor productivity, and government environmental governance variables were added as instrumental variables for two-stage least-squares regression. In addition, environmental regulatory intensity and year were utilized as threshold variables for the threshold test. In the benchmark regression, environmental regulation harms regional industrial efficiency. However, according to the IV estimation of government environmental governance variables, environmental regulation has a positive effect on the transformation of regional industrial efficiency. The influence of environmental regulation on industrial efficiency will be first suppressed and then promoted with the gradual increase of regulatory intensity. Furthermore, there is significant spatial heterogeneity in the impact of environmental regulations.

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