Do Environmental Regulations Improve Industrial Efficiency?

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 prod...

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Main Authors: Peng Li, Li-Li Shi
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:Advances in Civil Engineering
Online Access:http://dx.doi.org/10.1155/2021/1979353
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author Peng Li
Li-Li Shi
author_facet Peng Li
Li-Li Shi
author_sort Peng Li
collection DOAJ
description 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.
format Article
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institution Kabale University
issn 1687-8094
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publishDate 2021-01-01
publisher Wiley
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series Advances in Civil Engineering
spelling doaj-art-30c8e424aa7646dd87482dc399e62c972025-02-03T06:44:02ZengWileyAdvances in Civil Engineering1687-80942021-01-01202110.1155/2021/1979353Do Environmental Regulations Improve Industrial Efficiency?Peng Li0Li-Li Shi1International Business School of Shaanxi Normal UniversityInternational Business School of Shaanxi Normal UniversityThis 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.http://dx.doi.org/10.1155/2021/1979353
spellingShingle Peng Li
Li-Li Shi
Do Environmental Regulations Improve Industrial Efficiency?
Advances in Civil Engineering
title Do Environmental Regulations Improve Industrial Efficiency?
title_full Do Environmental Regulations Improve Industrial Efficiency?
title_fullStr Do Environmental Regulations Improve Industrial Efficiency?
title_full_unstemmed Do Environmental Regulations Improve Industrial Efficiency?
title_short Do Environmental Regulations Improve Industrial Efficiency?
title_sort do environmental regulations improve industrial efficiency
url http://dx.doi.org/10.1155/2021/1979353
work_keys_str_mv AT pengli doenvironmentalregulationsimproveindustrialefficiency
AT lilishi doenvironmentalregulationsimproveindustrialefficiency