Abstract
This study investigated the spatial spillover effects of environmental regulation (ER) on industrial green growth performance (IGGP) in China. Firstly, a parametric stochastic frontier analysis (SFA) was estimated to measure IGGP using the data of China’s 30 provincial industry sectors during 2000–2014. Then, considering the space–time characteristics in IGGP, the spatial spillover effects of three types of ER, namely, administrative environmental regulation (AER), market-based environmental regulation (MER), and voluntary environmental regulation (VER), on IGGP was examined by employing spatial Durbin model (SDM). The main findings are: (1) the IGGP is low but shows a trend of continuous improvement and there is a significant disparity and spatial autocorrelations amongst regions; (2) the spillover effects of the three types of ER are different, specifically, the spillover effects of AER are significant negative, while the effects of MER and VER are both significant positive. The difference between the latter two is that the positive spillover effect of MER on IGGP is so large to outperform the negative direct effect, while the effect of VER is very minor. Based on these findings, relevant policy suggestions are presented to balance industrial economic and environmental protection in order to promote IGGP.
Highlights
The tremendous development of China’s industry is exemplified by the rise in industrial value added (IVA) from 40,259.7 billion RMB in 2000 to 247,877.7 billion RMB in 2016, with an annual growth rate of 12.2% [1]
It can be seen from the estimation results that at a 1% confidence level, the t value of γ indicates that the null hypothesis is rejected and the alternative hypothesis of inefficiency in China’s industrial green growth performance (IGGP) is accepted
In comparison with the results of Zhao et al [20,21], the common feature is that market-based environmental regulation (MER) has a positive impact, and the difference is that studies [20,21] failed to separate the indirect from direct effects, while in our study, we found that the spillover effect of MER amounts to
Summary
The tremendous development of China’s industry is exemplified by the rise in industrial value added (IVA) from 40,259.7 billion RMB in 2000 to 247,877.7 billion RMB in 2016, with an annual growth rate of 12.2% [1]. This has been at the expense of a large amount of energy usage and environmental deterioration. In the face of such aggravating environments, green growth, as a new growth mode, provides an effective choice to achieve sustainable development. Chinese government has been active in taking various measures to achieve green growth, of which
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