Assessing the impact of environmental regulation on pollution abatement and collaborative emissions reduction: Micro-evidence from Chinese industrial enterprises

Abstract

Given the rapid industrialization and urbanization of China, environmental problems have gradually become major constraints that hinder its sustainable economic development. Moreover, China's pollution abatement and reduction of greenhouse gas emissions have been severely affected by pressures coming from domestic environmental appeals and international environmental diplomacy. By using integrated data from the Chinese Industrial Enterprise and the Chinese Enterprise Environmental Survey and Reporting databases, this study constructs comprehensive indicators of pollutant discharge intensity and carbon emissions index at the enterprise level and uses the panel fixed effect model, Kaya identity, and mediation effect model to assess the effects of environmental regulations on pollution abatement and collaborative emissions reduction from the micro-perspective. Results show that these regulations can abate the pollution emissions of Chinese industrial enterprises and verify the effectiveness of environmental policies. These regulations can also efficiently reduce the carbon dioxide emissions of enterprises through pollution abatement. In other words, environmental regulations facilitate a collaborative emissions reduction of pollutant and greenhouse gas emissions from enterprises. Such collaborative emissions reduction effect is also influenced by the energy structure and consumption of enterprises. This paper presents empirical evidence and policy basis for further improving China's environmental regulation policy system and achieving coordinated progress in China's economic development and environmental governance.