Environmental Regulation Policies Research Articles

Research on the Impact of Environmental Protection Tax on Green Technology Innovation of Enterprises

Research on the Impact of Environmental Protection Tax on Green Technology Innovation of Enterprises

Environmental Regulations and Urban Technological Innovation: China’s Two Control Zones Policy as Evidence

In China, the Two Control Zones (TCZ) policy is an important practice in promoting sustainable development. This study aimed to investigate whether the TCZ policy promotes urban technological innovation. In this research, a DID model was built with the TCZ policy as an exogenous shock using panel data covering over 223 Chinese cities from 1995 to 2003. The empirical outcomes indicate that the TCZ policy is beneficial for augmenting urban technological innovation. Through heterogeneity analysis, it is further observed that the promotional effects of technological innovation resulting from the TCZ policy are highest in the Western region, followed by the Eastern region, and finally the Central region, and higher in cities with a higher proportion of state-owned enterprises than in cities with a higher proportion of non-state-owned enterprises. The findings of this paper align with Porter’s hypothesis and hold significant importance for other countries in devising appropriate environmental regulation policies to facilitate sustainable development.

Peer effects of firm environmental protection expenditures

This study investigates the existence and influencing factors of peer effects in firms’ environmental protection expenditures (EPE). Using data from Chinese A-share listed companies from 2010–2021, we find that firm EPE decisions are positively influenced by the average level of peer firms within the same industry. Furthermore, we document that the peer effects of firm EPE are more significant when firms are covered by the new Environmental Protection Law and analysts. We also find that the peer effects of EPE can increase firm value, indicating that peer effects can enhance the scientificity and legitimacy of decision-making. To the best of our knowledge, our study is the first to investigate the influencing factors of firm EPE decisions from the perspective of peer effects, which can provide empirical evidence for firms’ green behavioral decisions and the formulation of environmental regulation policies.

Research on the evolution game of low-carbon operations in cold chain logistics considering environmental regulations and green credit

To solve the problem of insufficient low-carbon operational motivation among cold chain logistics enterprises due to the high investment costs of low-carbon assets and considering the promotional effect of environmental regulatory policies and green credit, an evolutionary game model was constructed for the government, cold chain logistics enterprises, and financial institutions. The stability strategies of each participating entity and the stability of the system equilibrium point were analyzed, and the relevant conclusions were verified through numerical simulations. The research results indicated the following: (1) the initial willingness of the three parties to participate increased, the low-carbon operation of cold chain logistics enterprises and the speed of green credit services provided by financial institutions accelerated, and the rate of strict government regulation slowed down. (2) Moderate subsidies and taxes were conducive to the joint participation of the three parties. (3) Increasing the subsidy for green credit provided positive incentives for financial institutions to provide green credit services, while reducing credit interest rates accelerated the low-carbon operation rate of cold chain logistics enterprises.

Do environmental regulation policies increase urban boundary pollution? Micro evidence from Chinese industrial enterprises

Industrial organizations frequently opt to relocate their activities to regions bordering administrative boundaries, where regulatory oversight is comparatively lax, to hinder adherence to environmental regulations, which leads to boundary pollution concerns. Using a staggered DID model to Assess the influence of governmental environmental regulations on pollution at administrative boundaries using microdata obtained from Chinese industrial enterprises, this research employs the low-carbon city pilot policy as a quasi-experiment. The following are the study's findings: (1) The low-carbon city pilot policy increase boundary pollution levels by 1.3 % at the industrial enterprise level, supporting the pollution haven hypothesis. A series of robustness tests, including boundary enterprise identification and boundary distance calculations, are used to validate this result. (2) The low-carbon city pilot policy's boundary pollution effect has a fluctuating, wave-like spatial pattern. The pollution effect is most noticeable at about 10 km from the administrative boundary. (3) There is no evidence that the low-carbon city pilot policy's impact on industrial enterprises is consistent with the Porter hypothesis. (4) Environmental regulations are like a two-edged sword. According to data obtained from the branches of financial institutions, environmental regulations not only contribute to boundary pollution but also influence the development of the boundary area to some degree. This research provides original empirical findings from the standpoint of micro-level enterprises, substantiating the presence of boundary pollution as a result of environmental regulation evasion, providing policy recommendations for the development of environmental regulatory policies and the management of urban boundary pollution.

Evolutionary Game Analysis of Green Supply Chain Management Diffusion under Environmental Regulation

The continuous deterioration of the ecological environment and the increasing scarcity of resources have posed a serious challenge to the survival and development of human beings, and the implementation of green supply chain management (GSCM) in this context is an effective means to ensure the sustainable development of society and the economy. In order to seek the optimal strategy of evolutionary game in the implementation of green supply chain management and explore the influence of environmental regulation intensity and public preference degree on the evolution process of green supply chain management diffusion development, this paper takes the study of green supply chain management diffusion as the core innovation point, and under the premise of environmental regulation, selects the government, the core enterprise, and the public as the participating bodies of green supply chain management diffusion, and uses the theory of evolutionary game to construct a diffusion model of green supply chain management. Using evolutionary game theory to construct a diffusion model, and with the help of MATLAB and other mathematical tools for numerical simulation analysis, we discuss the diffusion of the green supply chain and derive the optimal combination strategy. The results of the study show that: (1) there are four evolutionary stable states in the process of green supply chain management diffusion: preliminary diffusion, extinction, semi-diffusion, and full diffusion; (2) it will be beneficial for the government to promote the evolutionary diffusion of green supply chain management by implementing a higher intensity of pollution tax policy while implementing green supply chain incentive strategies; (3) the government, while implementing environmental regulation policies, should also pay attention to the guidance of the public’s awareness of environmental friendliness and greenness, and focus on the role of the comprehensive strategy selection of the three parties of the game in reaching the optimal state. The conclusions of the study provide theoretical guidance and decision support for the implementation and diffusion of green supply chain management under environmental regulation.

The Impact of the Integration of the Culture Industry and Tourism on Regional Green Development: Empirical Evidence from China

The concept of “green development” has garnered increasing recognition and prominence in recent years, attracting the attention of various countries and regions. How to achieve green development has become a pressing issue for the government. The integration of the culture industry and tourism has had a profound impact on regional green development. This paper employs the entropy method to assess the level of regional green development, and it employs the coupling coordination model to evaluate the degree of integration of the culture industry and tourism across 30 provincial administrative regions in China from 2011 to 2021. Additionally, an econometric model is constructed to empirically examine the impact of the integration of the culture industry and tourism on regional green development, as well as its underlying mechanism. The findings of this study indicate the following: (1) The integration of the culture industry and tourism significantly enhances regional green development. (2) With the improvement in the regional green development level, the integration of the culture industry and tourism is playing a gradually stronger role in promoting regional green development. (3) Further analysis of the mechanism reveals that the integration of the culture industry and tourism enhances regional green development by facilitating the upgrading of the tourism industrial structure. (4) Environmental regulation policies reinforce the role of the integration of the culture industry and tourism in promoting regional green development. These research findings contribute to enhancing our understanding of the impact of the integration of the culture industry and tourism on regional green development, providing empirical evidence and policy recommendations for the government to facilitate the integration of the culture industry and tourism and further promote green development.

The Impact of Environmental Regulation on Collaborative Innovation Efficiency: Is the Porter Hypothesis Valid in Chengdu–Chongqing Urban Agglomeration?

Under the advocacy of sustainable and innovation-driven development, the potential impact of environmental regulation on collaborative innovation has become a controversial issue. This article uses panel data from 16 cities in the Chengdu–Chongqing urban agglomeration from 2011 to 2021 to analyze the impact of environmental regulation on collaborative innovation efficiency. First, this study uses the two-stage DEA model to analyze each city’s industry–university–research collaborative innovation efficiency. Then, the impact of environmental regulation on collaborative innovation is analyzed using the Tobit model. The results show that in the temporal dimension, the collaborative innovation efficiency of each city shows an upward trend. This demonstrates the outstanding effectiveness of transforming knowledge into technology for economic development. In the spatial dimension, the collaborative innovation efficiency of this urban agglomeration shows a “high in the center and low in the surroundings” pattern. The Tobit regression model shows that environmental regulation significantly impacts collaborative innovation in the Chengdu–Chongqing urban agglomeration. Command-and-control environmental regulation policies have a threshold effect on collaborative innovation, verifying the Porter hypothesis that appropriate environmental regulation promotes innovative activities. The results provide an initial basis for formulating regional environmental policies to achieve a win–win situation for innovation and sustainability in underdeveloped regions.

A dynamic panel threshold model analysis on heterogeneous environmental regulation, R&D investment, and enterprise green total factor productivity

Environmental regulations are important means to influence manufacturing enterprise green development. However, there are two completely different conclusions both in theoretical and in empirical research, namely the “Follow Cost” theory and the “Porter Hypothesis”. The nonlinear mechanism needs to be considered. Therefore, this study aims to explain the threshold impact of heterogeneous environmental regulations on enterprise green total factor productivity. Environmental regulations are divided into different sub-categories, then based on the panel data of 1220 Chinese manufacturing listed companies from 2011 to 2020, this paper uses threshold regression model to examine the impact of heterogeneous environmental regulations on Chinese manufacturing enterprise Green Total Factor Productivity. The empirical results show that: (1) Command-controlled, market-incentive and voluntary-agreement environmental regulation all have a significant nonlinear impact on enterprise Green Total Factor Productivity. (2) Enterprise R&D investment plays a threshold role in the impact. (3) There are industry and equity type differences in the impact process. This study focuses on the micro level of enterprises and tests the threshold mechanism, which make some theoretical complement to previous researches. The research results are not only beneficial for the government to propose appropriate environmental regulatory policies, but also for enterprises to achieve green growth through heterogeneous R&D investment.

Distance makes a difference: The role of water pollution regulation on firms’ innovation in China

Throughout the imminent water crisis era and stringent water environment management, enterprises play a vital role in environmental governance. However, there is seldom analysis on how the water environment regulation influences an enterprise's innovation due to data deficiency. Using our database from 2000 to 2022, we combine geographic information from water quality monitoring stations with the data on listed companies in China to pinpoint what distance firms are exposed to the monitoring stations. Results from a spatial regression discontinuity design along the geographic distances demonstrate that water environmental regulation has a significant positive impact on the quantity and quality of enterprise innovation. This paper found that it is primarily driven by the decreased usage of intermediate goods, rising industry profits from the exit of low-productivity firms, and enhanced enterprise research and development (R&D) investment. Furthermore, the positive impact is more pronounced for privately-owned firms, firms closer to suppliers, polluting firms, and politically unaffiliated firms. Our study offers scientifically valuable insights for emerging market countries in formulating effective water environmental regulation policies to incentivize firms to innovate in environmental protection. Additionally, it provides novel ideas on synergizing water environmental regulation and firm innovation to foster a mutually beneficial relationship between environmental protection and sustainable development.

Entrepreneurial spirit: A catalyst on the road to green and sustainable development——A theoretical analysis based on dynamic games and empirical tests from Chinese data

Environmental protection and sustainable development are now profoundly ingrained in the public consciousness in the modern era of the global green revolution. First, this paper uses an evolutionary game model to theoretically analyse the impact of environmental regulation and green finance on enterprises by dissecting the game behaviour between local governments, banks and enterprises. Then, we incorporate entrepreneurial spirit into the model to determine whether entrepreneurial spirit accelerates the achievement of green sustainability objectives. Environmental regulation and green finance are found to contribute substantially to the innovation of green technologies by local enterprises, while entrepreneurial spirit accelerates this process. Finally, we empirically test the findings based on a prefecture-level panel dataset from 2007 to 2020. We find that green finance has a positive impact in Central and Western cities of China, while Eastern cities are in greater need for government environmental regulation controls. For entrepreneurial spirit, the incentive effect of entrepreneurial spirit on the level of green technology innovation is more significant in Central and Western regions of China. This paper enriches the field of research on entrepreneurial spirit and regional green sustainable development by providing empirical evidence for the evaluation of environmental regulatory and green financing policy impacts.

Window dressing: Changes in atmospheric pollution at boundaries in response to regional environmental policy in China

In decentralized environmental governance, local governments are likely to adopt the “beggar-thy-neighbor” strategy to relax regulations at boundaries. This study investigates the impact of China's Joint Atmospheric Prevention and Control Policy (JAPCP) in “2 + 26” cities enforced by the central government on pollution at provincial boundaries. The theoretical model suggests that dual incentives for environmental protection and economic growth may prompt local governments to reduce boundary pollution within the JAPCP-covered area while relocating pollution to uncovered boundaries. Based on Shandong Province data using the difference-in-differences approach, our analysis reveals a 9.6% decline in the air quality at JAPCP-covered boundaries compared to non-boundary areas and a 5.3% increase at JAPCP-uncovered boundaries, which is associated with migration of key regulated industries. Through examining annual work reports, we provide evidence that local governments modify regulatory intensity at various boundaries. These findings indicate that, while regional environmental policies are intended to promote inter-jurisdictional cooperation, the local government responses lead to unintended costs.

Environmental regulation, hog scale production and the synergy of pollution control and carbon reduction

<p>The synergy of pollution control and carbon reduction is conducive to promoting the green transformation of the economy. Based on China’s 30 provincial administrative panel data from 2002 to 2020, using the elastic concept to measure the synergy index and the panel fixed effect model to carry out empirical analysis, we analyzed the relation between environmental regulation and the synergy of pollution control and carbon reduction. The results revealed that: (1) Environmental regulation positively influenced the synergy of pollution control and carbon reduction in hog breeding. (2) Different types of pollution and carbon reduction had different synergistic effects. Compared with chemical oxygen demand and ammonia nitrogen, the positive effect of environmental regulation on the synergy of total phosphorus and carbon reduction was relatively weaker. (3) From the perspective of impact mechanisms, environmental regulation mainly achieved synergies through the “production constraint effect” and the “innovation compensation effect”. (4) Further analysis showed that environmental regulation had a significant scale threshold effect on the synergy of pollution control and carbon reduction in hog breeding. Therefore, the heterogeneity of pollutants and industrial scale should be considered in the optimization of environmental regulation policies.</p>

Impact of Environmental Regulation on Export Technological Complexity of High-Tech Industries in Chinese Manufacturing

Since the reform and opening-up, China has developed into the world’s number one manufacturing country. Meanwhile, China’s environmental protection efforts continue to strengthen. So, will changes in the intensity of environmental regulatory policies have an impact on the technological development level and international competitiveness of China’s high-tech manufacturing industries? In response to this issue, we have reviewed relevant research in the field of environmental regulation and export technology complexity, and then selected appropriate indicators to quantify the environmental regulation and export technology complexity of high-tech manufacturing industries in different regions of China. Furthermore, the entropy method was used to calculate the intensity of environmental regulations in different regions of China. In the subsequent empirical analysis, based on relevant indicator data from 30 provinces in China, excluding Tibet, from 2006 to 2021, we quantitatively analyzed the impact of China’s environmental regulations on the complex export technology of high-tech manufacturing industries. The degree of influence and the robustness of the benchmark regression results was proved through endogeneity testing and robustness testing. The main conclusions are as follows: (1) from 2006 to 2021, China’s environmental regulation intensity and the technological complexity of high-tech industry exports have shown an upward trend. (2) The empirical analysis results show that the increase in intensity has a significant “U-shaped” impact on the technological complexity of exports of high-tech manufacturing industries. (3) The “U-shaped” impact of environmental regulation on the technological complexity of exports of high-tech manufacturing industries has regional differences. However, the high-tech manufacturing industry does not show obvious industry differences. (4) Environmental regulations will affect the level of export technology complexity of the high-tech manufacturing industry through foreign direct investment, human capital, and innovative R D investment, which cause indirect effects. Based on those conclusions, this paper has suggested corresponding policy measures and future research directions.

The impact of market-incentive environmental regulation policies on corporate environmental costs: Evidence from China's carbon trading policy.

As the world's largest emitter of carbon, China has implemented a series of environmental regulatory policies to reduce emissions. However, most of these environmental regulations have been at the expense of increased corporate environmental costs. Therefore, research on how to efficiently control these costs is of significant practical importance. This paper uses the China's carbon trading policy (CTP) implemented in 2013 as a quasi-natural experiment, utilizing data from Chinese listed manufacturing firms between 2008 and 2020. Employing a difference-in-differences (DID) model, the study investigates the impact of market-incentive environmental regulatory policies (ERP) on environmental costs. The findings reveal that CTP significantly reduced the environmental costs of firms, confirming the positive and vital role market-incentive ERP can play in environmental protection and cost control. These conclusions remain robust after a series of stability tests. Mechanism analysis suggests that the cost reductions brought by market-incentive ERP are primarily achieved through increasing green innovation. Heterogeneity analysis shows that non-state-owned enterprises (non-SOEs), key polluting firms, firms with lower financial constraints, and firms with lower total production efficiency benefit more from market-incentive environmental regulatory policies. This study provides new empirical evidence for government policy-making aimed at achieving long-term sustainable development.

The Impact of Environmental Regulations on Carbon Emissions of Chinese Enterprises and Their Resource Heterogeneity

At present, net-zero emissions have become a widely accepted goal globally. For a giant carbon emitter like China, especially after just experiencing a high-energy consumption, high-emission, and low-efficiency extensive economic model, achieving the global net-zero emissions target by the middle of this century is particularly important. The implementation of environmental regulation policies is one of the inevitable choices for achieving carbon peak and carbon neutrality. Existing theoretical analysis shows that environmental regulation acts on pollution emissions through cost effects and technological innovation, but relevant studies mostly focus on macro effects and ignore the impact of enterprise heterogeneity. This study calculates the carbon emission data of listed enterprises in China from 2012 to 2021 and examines the impact of environmental regulation policies on the carbon emission intensity of enterprises and its transmission mechanism from both theoretical and empirical perspectives. At the same time, the heterogeneity effect of resource-based industry and non-resource-based industry is considered. The research results show that China’s environmental supervision has been increasing year by year, which can reduce the carbon emission intensity of enterprises by improving the level of environmental disclosure of enterprises, environmental management concepts, and resource allocation efficiency and accelerating the establishment of environmental systems of enterprises, but the effect of technological innovation has not been highlighted. Further heterogeneity also indicates that environmental regulation is more conducive to reducing the carbon emission intensity of non-resource-based enterprises, small enterprises, and non-state-owned enterprises. The conclusions of this paper provide a precise direction for the implementation of environmental regulation policies in China and the world.

An Empirical Study on the Short-term Impact of the Environmental Protection Fee-to-Tax Reform on Corporate Investment Efficiency

This paper uses non-financial A-share listed companies in China from 2010 to 2020 as research samples, utilizing the quasi-natural experiment conducted through the implementation of the "Environmental Protection Tax Law". The study investigates the short-term impact of the environmental protection fee-to-tax policy on corporate investment efficiency using a generalized difference-in-differences approach. The results indicate that the implementation of the environmental protection fee-to-tax policy significantly suppresses corporate investment efficiency in the short term and increases firms' inefficient investment. Furthermore, it is found that the policy exacerbates the problem of corporate overinvestment, whereas its impact on underinvestment is not significant. After conducting robustness tests by substituting the dependent variables, the conclusion remains valid. Subsequent heterogeneity analysis was conducted, differentiating between state-owned controlling enterprises and non-state-owned controlling enterprises based on the proportion of state capital, compared to state-owned controlling enterprises, the impact of the policy is more significant on non-state-owned controlling enterprises; Additionally, the policy effects across different economic regions of China were analyzed, revealing that the policy's effect is most significant in the eastern region, significant in the western region, but not significant in the central region. The conclusions of this study further enrich the empirical evidence of the micro-effects of environmental regulation, extending the research on the effects of the environmental fee-to-tax policy, and also provide suggestions for policymakers to formulate effective market-incentive-based environmental regulatory policies.

The Role of Industrial Structure in the Impact of Environmental Regulation on Carbon Productivity

In the context of global climate change, China has proposed the "Carbon peaking and Carbon neutrality goals" goal of carbon emissions will reach carbon peak by 2030 and carbon neutral by 2060. As a market-based environmental regulation policy to promote greenhouse gas emission reduction, carbon emission trading policy is expected to reduce carbon emissions and improve carbon productivity, among which industrial structure plays a regulatory role in the impact of carbon emission trading policy on carbon productivity. Using the provincial data of China from 2006 to 2019, this paper evaluated the influence of carbon emission trading policy on carbon emission, taking the industrial structure as the regulating variable, studied the industrial structure in the influence of environmental regulation on carbon emission, and tested the regression results of DID model through parallel trend test, placebo test and PSM-DID model regression. After the above research process, the following conclusions are drawn: the carbon emission trading policy has a significant positive promotion effect on carbon emission reduction, and it is further concluded that the industrial structure has a significant negative regulatory effect on carbon productivity under the carbon emission trading policy.

Does environmental regulation promote green technological innovation of companies? Evidence from green patents of Chinese listed companies

Abstract Environmental regulations stimulate Chinese listed companies to engage in green technology innovation. Moreover, the internal attributes of listed companies such as ownership form, the nature of the industry and locations affect the role of environmental regulations on green technology innovation. This paper selects data on Chinese-listed A-share enterprises from 2010-2019 and constructs a S-GMM model to analyze the impact of environmental regulations on green technology innovation through internal attributes of firms. The empirical results show that, first of all, in the sample period, tight environmental regulations hinder green technology innovation carried out by listed enterprises in state-owned heavy polluting industries in eastern China, and there is no innovation compensation effect. Secondly, green technology innovation in the previous period does not significantly promote green technology innovation in the current period. Finally, overvaluation of listed companies by investors encourage Chinese listed enterprises to engage in green technology innovation, especially among non-state-owned listed companies in non-heavy polluting industries. The findings of this paper provide empirical support for environmental regulation policy recommendations, that foster economic growth and promote green and low-carbon industrial transformation in the direction of high-quality development of the economy.

Research on the Impact of Heterogeneous Environmental Regulation on the Coordinated Development of China’s Water–Energy–Food System from a Spatial Perspective

Water resources, energy, and food are fundamental resources for ensuring human social development. The coordinated development of these resources contributes to improving the quality of the social environment, promoting harmony between humans and nature, and achieving economic, social, and ecological sustainability. This study utilizes panel data from 30 provinces in China from 2003 to 2020. Using a coupled coordination degree model, the coupling coordination degree of the Water–Energy–Food (WEF) system is calculated, and the spatiotemporal evolution and social network connections of WEF coupling coordination are analyzed. The spatial Durbin model is employed to investigate the spatial spillover effects of heterogeneous environmental regulation on the coordinated development of the WEF system. The mechanism model is used to explore the pathways through which heterogeneous environmental regulation influences the coordinated development of the WEF system. The results of this study demonstrate that the coupling coordination index of China’s provincial-level WEF system has shown a steady upward trend, except for a slight decline in a few years. Over the research period, there has been a significant improvement in regional coupling coordination levels. There are large differences in the level of WEF coupling coordination among different regions, with a distribution pattern of south > north and east > west. Both formal and informal environmental regulations have significant positive effects on the coupling coordination development of the WEF system, as well as significant positive spatial spillover effects. Formal environmental regulation has a stronger impact compared to informal environmental regulation. Foreign direct investment and industrial structural upgrading are important pathways for environmental regulation to promote the coordinated development of the WEF system. Both formal and informal environmental regulations can promote the coordinated development of the WEF system by facilitating foreign direct investment and industrial structural upgrading. This study not only provides important scientific evidence and decision-making references for policymakers in formulating environmental regulation policies but also offers new evidence support for the theory of regional development disparities.