The Impact of Environmental Regulation on the Export Quality of China's Manufacturing Industry under the CBAM Framework

Abstract

This paper selects the export data and input-output data of four high carbon emission manufacturing industries initially covered under the CBAM framework from 2001 to 2019, respectively uses Hausmann's method and DEA model to measure the manufacturing industry export quality and green total factor productivity, and explores the impact of environmental regulation on China's manufacturing industry export quality based on the individual fixed effect model. The results show that environmental regulation will have a positive impact on the export quality of high carbon emission manufacturing industry in terms of capital, labor, energy, green total factor productivity, etc. Further analysis shows that: the total amount of labor input is negatively related to export quality, while the total amount of capital input, energy input, green total factor productivity and export quality are positively related. The conclusion of this paper shows that supporting technology R&D, increasing capital investment and implementing industrial differentiation are important development path orientations to promote China's high carbon manufacturing industry to improve export quality.