Dynamic Impact of Environmental Regulation on Environmental Performance in China: New Evidence from a Semiparametric Additive Panel Analysis

Xinjin Li,Ruyin Long

doi:10.3390/su131810069

Abstract

Environmental protection is the core of sustainable economic development, and environmental policy plays a key role in achieving protection goals. Therefore, it is extremely crucial to evaluate the effectiveness of environmental policies. Existing studies mainly focus on the average impact of environmental policies on environmental pollution but ignore their dynamic impact, which is prone to misestimate the effect of environmental policies. To make up for the deficiency, a semiparametric additive panel data model is used to explore the dynamic impact of China’s sewage charging policy on environmental performance at each level of the levy. The results show that the relationship between sewage charge level and environmental degeneration is an “M-shaped” pattern, indicating that the current sewage charge policy is not absolutely effective. Moreover, the results also reveal an “N-shaped” linkage between economic growth and environmental pollution, indicating that economic development is not sustainable. Moreover, the factors of energy consumption, population growth, and industrialization contribute to increasing environmental degeneration. Although technological development has a positive impact on environmental performance, its impact is insignificant. This study could provide new evidence for strengthening environmental regulatory reform and promoting green economic development.

Highlights

Environmental pollution is a serious hazard to public health and a burden to the economy and society, causing a loss of national income [1]
We propose that the effects of environmental regulation on environmental performance are dynamic and nonlinear, and the dynamic and nonlinear effects of sewage charges on the environment at each cumulative level are explored, which is more in line with reality; (2) Consider the nonlinear effects of sewage charges while simultaneously testing the nonlinear effects of economic development on the environment
The results suggest that growth in income levels increases environmental pollution during the initial stages of economic development, and when a certain level of income is reached, economic growth decreases environmental pollution, but pollution continues to grow with further increases in income

Summary

Introduction

Environmental pollution is a serious hazard to public health and a burden to the economy and society, causing a loss of national income [1]. Landrigan et al [2] found that the annual welfare loss due to pollution amounts to USD 4.6 trillion dollars, accounting for 6.2% of global economic output. 80–90% of human cancers are linked to environmental factors [3]. In the midst of rapid economic growth, some problems, such as excessive resource consumption and serious environmental pollution, have become increasingly prominent [5]. Ebenstein [6] argued that the impact of pollution from economic growth on the life expectancy of Chinese people is considered a serious obstacle to improving health.

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Discussion

Conclusion