Study on the effect of the environmental protection industry and investment for the national economy: An input-output perspective

Abstract

Using various coefficients and demand-supply models based on environmental protection industry input–output tables in China, this study attempts to answer the questions of how and to what extent the environmental protection industry and investment advance the country's industries, economy and employment. The results demonstrate that the environmental protection industry plays a key role in the green economy, it can drive and support the development of other industries, especially the manufacturing industry with total drive coefficients of 1.0516 and 1.0899 in 2010 and 2012, respectively. Besides, it can effectively boost the national economy and employment, which are also an important part of a green economy and jobs. However, results show that environmental protection investment plays a limited role in driving the environmental protection industry, which itself is an altruistic industry with self-drive coefficients of 0.32 and 0.31 in 2010 and 2012, respectively. Furthermore, investment in other industries does not flow effectively into the environmental protection industry. Finally, some suggestions were recommended for better developing the environmental protection industry.