Does environmental regulation policy help improve green production performance? Evidence from China's industry

Chao Wang · Yue‐Jun Zhang

82 citations0/0 files storedCorporate Social Responsibility and Environmental Management

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Energy, Environment, Economic Growth Climate Change Policy and Economics Environmental Sustainability in Business

Abstract

Abstract Environmental regulation (ER) policy is an effective means to improve green production performance (GPP), but how ER policy will affect China's GPP remains to be studied. Therefore, with the panel data of 38 industrial sectors in China during 2004–2015, we employ the continuous difference in difference method and system generalised method of moment method to estimate the impact of ER policy on GPP in the heavily polluting sectors of China. The empirical results show that first, the implementation of ER policy does not significantly improve GPP of heavily polluting sectors during the sample period. Among them, the external technological progress and export learning effect are important factors that hinder their GPP. Second, ER has no lag effect on GPP of 38 industrial sectors, and the increase in research and development investment does not significantly improve GPP. Finally, foreign direct investment has promoted GPP in China's industrial sectors to some extent.

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References

1998Initial conditions and moment restrictions in dynamic panel data models 1995Another look at the instrumental variable estimation of error-components models 1997Environmental Regulation and Innovation: A Panel Data Study 2011The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan 2012The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership, and Green Creativity 2003Green and competitive 2016Can environmental innovation facilitate carbon emissions reduction? Evidence from China 2009Environmental innovation and environmental performance

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