Abstract
Developing countries face the conflict between economic development and environmental protection. Resource misallocation will not only affect the effectiveness of economic development, but also have environmental impacts. Based on two large-scale enterprise databases in China, this paper measured the level of enterprise resource allocation, and further used empirical research methods to investigate the environmental impact of enterprise resource misallocation and specific mechanisms. The results show that the low efficiency of resource allocation will harm the quality of China’s environment. Further investigation, resource misallocation is accompanied by an increase in total energy input, a decrease in the labor-to-energy ratio and the capital-to-energy ratio, and a loss of energy efficiency, which in turn affects the environmental performance of enterprises. China is the largest developing country in the world, and research on China’s environmental and economic issues is important. The conclusions of this paper can provide experience and suggestions for other developing countries to improve environmental quality and promote sustainable development from the perspective of resource misallocation.
Highlights
Resource misallocation is accompanied by an increase in total energy input, a decrease in the labor-to-energy ratio and the capital-to-energy ratio, and a loss of energy efficiency, which in turn affects the environmental performance of enterprises
Existing studies have mostly focused on the economic impact of resource misallocation, and believe that resource misallocation will bring about economic efficiency loss in the long run, but how the process of misallocation affects environmental quality has received little attention
This paper examined the environmental performance of enterprises from the perspective of resource misallocation for the first time
Summary
In the process of China’s rapid development, the extensive development mode of high energy consumption, high pollution and high emission has brought huge environmental loss and energy consumption, and there is a conflict between economic progress and environmental protection. Resource misallocation can lead to the inefficiency of energy input, form entry barriers for potentially highefficiency green enterprises, raise the exit barriers for backward production capacity and low-efficiency enterprises; and make high-energy-consuming enterprises have path dependence All these will bring about the loss of environmental quality. China’s environmental issues from the perspective of resource misallocation and clarifying the mechanism by which resource misallocation affects enterprise pollution emissions are of great significance for China and other developing countries to achieve green and sustainable development. This paper uses enterprise data to demonstrate and analyze the environmental impact of resource misallocation for the first time, and examines the specific mechanism of resource allocation affecting pollution emissions, which complements the shortcomings of the research in the micro-field.
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