Does Environmental Policy Affect Green Total Factor Productivity? Quasi-Natural Experiment Based on China's Air Pollution Control and Prevention Action Plan.

Tinghui Li,Bin Mo,Jiehua Ma

doi:10.3390/ijerph18158216

Abstract

It is the scientific way to promote the transformation and optimization of an industrial structure to promote the improvement of its green total factor productivity (GTFP) by formulating environmental regulation policies. Based on the GTFP panel data of 30 provinces in China from 2004 to 2017, this paper takes the “Air Pollution Control and Prevention Action Plan” (APCP Action Plan) as the proxy dummy variable of environmental regulation, and uses the difference-in-differences (DID) model to explore the impact of the implementation of the APCP Action Plan on GTFP. In addition, by constructing the industrial structure optimization index, this paper analyzes how the APCP Action Plan policy affects GTFP through the transformation and optimization of industrial structure. The following basic conclusions are obtained: First, environmental regulation policies like the APCP Action Plan can improve GTFP. Second, the APCP Action Plan has regional heterogeneity in promoting GTFP in different regions. The policy only significantly affects the GTFP in the Pearl River Delta region in southern China. Third, the “quantity” and “quality” of the optimization of industrial structure will weaken the promoting effect of the APCP Action Plan on GTFP. In contrast, the rationalization of industrial structure will aggravate this promoting effect.

Highlights

IntroductionFor the sake of people’s health as well as a sustainable economic development, countries have put forward corresponding environmental protection policies and relevant legal provisions in view of these environmental problems
Judging from the intensity of environmental supervision brought by environmental policies due to the imbalance of economic development and industrial structure [1], different levels of pollution are subject to diverse levels of regulation
This paper focuses on the impact of environmental policy on green total factor productivity (GTFP), testing the impact of the APCP Action Plan on regional GTFP, as well as the moderating effect with industrial structure optimization and rationalization as moderating variables

Summary

Introduction

For the sake of people’s health as well as a sustainable economic development, countries have put forward corresponding environmental protection policies and relevant legal provisions in view of these environmental problems. Environmental policy is a means of environmental control, which pays more attention to the efficient management of pollutants to improve people’s living environment and make it more comfortable and pleasant, which may decrease economic development. Judging from the intensity of environmental supervision brought by environmental policies due to the imbalance of economic development and industrial structure [1], different levels of pollution are subject to diverse levels of regulation. It will lead to regional industrial transfer and the change of air pollution [2,3], making subtle changes in the sustainable economic development among regions

Methods

Results

Discussion

Conclusion