IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v58y2021icp552-561.html
   My bibliography  Save this article

The effects of national environmental information disclosure program on the upgradation of regional industrial structure: Evidence from 286 prefecture-level cities in China

Author

Listed:
  • Liu, Shaohui
  • Liu, Chuanjiang
  • Yang, Mian

Abstract

With more and more serious resource and environment issues in China, the upgradation of industrial structure dominated by heavy industry is key to its sustainable development. In this paper, we try to evaluate the effects of national environmental information disclosure program on regional industrial structure upgradation during 2003 and 2017. Taking the promulgation of Environmental Information Disclosure Measures (for Trail Implementation) in China as a quasi-natural experiment, this paper employs the difference-in-differences (DID) method to conduct an empirical analysis. The results indicate that the disclosure of pollution information transparency index (PITI) at the city level has significantly upgraded local industrial structure and promoted its ecological transformation, and a series of robustness tests have also been conducted to provide further evidences. Moreover, the heterogeneity tests demonstrate that the effects of environmental information disclosure on regional industrial structure vary by government-enterprise relationship and geographical location.

Suggested Citation

  • Liu, Shaohui & Liu, Chuanjiang & Yang, Mian, 2021. "The effects of national environmental information disclosure program on the upgradation of regional industrial structure: Evidence from 286 prefecture-level cities in China," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 552-561.
  • Handle: RePEc:eee:streco:v:58:y:2021:i:c:p:552-561
    DOI: 10.1016/j.strueco.2021.07.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X21000850
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.strueco.2021.07.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John Pickles, 2006. "Trade Liberalization, Industrial Upgrading, and Regionalization in the Global Clothing Industry," Environment and Planning A, , vol. 38(12), pages 2201-2206, December.
    2. Mastromonaco, Ralph, 2015. "Do environmental right-to-know laws affect markets? Capitalization of information in the toxic release inventory," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 54-70.
    3. Aarti Gupta, 2008. "Transparency Under Scrutiny: Information Disclosure in Global Environmental Governance," Global Environmental Politics, MIT Press, vol. 8(2), pages 1-7, May.
    4. Don Fullerton & Garth Heutel, 2010. "The General Equilibrium Incidence of Environmental Mandates," American Economic Journal: Economic Policy, American Economic Association, vol. 2(3), pages 64-89, August.
    5. Tu, Zhengge & Hu, Tianyang & Shen, Renjun, 2019. "Evaluating public participation impact on environmental protection and ecological efficiency in China: Evidence from PITI disclosure," China Economic Review, Elsevier, vol. 55(C), pages 111-123.
    6. Sarah E. Anderson & Mark T. Buntaine & Mengdi Liu & Bing Zhang, 2019. "Non‐Governmental Monitoring of Local Governments Increases Compliance with Central Mandates: A National‐Scale Field Experiment in China," American Journal of Political Science, John Wiley & Sons, vol. 63(3), pages 626-643, July.
    7. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1403-1448.
    8. Daxin Sun & Saixing Zeng & Hongquan Chen & Xiaohua Meng & Zhizhou Jin, 2019. "Monitoring effect of transparency: How does government environmental disclosure facilitate corporate environmentalism?," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1594-1607, December.
    9. Linda T. M. Bui & Christopher J. Mayer, 2003. "Regulation and Capitalization of Environmental Amenities: Evidence from the Toxic Release Inventory in Massachusetts," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 693-708, August.
    10. Susan Athey & Guido W. Imbens, 2017. "The State of Applied Econometrics: Causality and Policy Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 3-32, Spring.
    11. Foulon, Jerome & Lanoie, Paul & Laplante, Benoit, 2002. "Incentives for Pollution Control: Regulation or Information?," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 169-187, July.
    12. Marques, António Cardoso & Caetano, Rafaela, 2020. "The impact of foreign direct investment on emission reduction targets: Evidence from high- and middle-income countries," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 107-118.
    13. Lyon, Thomas P. & Maxwell, John W., 2003. "Self-regulation, taxation and public voluntary environmental agreements," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1453-1486, August.
    14. Brandt, Loren & Thun, Eric, 2010. "The Fight for the Middle: Upgrading, Competition, and Industrial Development in China," World Development, Elsevier, vol. 38(11), pages 1555-1574, November.
    15. Petra Moser & Alessandra Voena, 2012. "Compulsory Licensing: Evidence from the Trading with the Enemy Act," American Economic Review, American Economic Association, vol. 102(1), pages 396-427, February.
    16. Wang, Rui & Qi, Zhongying & Shu, Yumin, 2020. "Multiple relationships between fixed-asset investment and industrial structure evolution in China–Based on Directed Acyclic Graph (DAG) analysis and VAR model," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 222-231.
    17. Cragg, John G. & Donald, Stephen G., 1993. "Testing Identifiability and Specification in Instrumental Variable Models," Econometric Theory, Cambridge University Press, vol. 9(2), pages 222-240, April.
    18. Michael Greenstone, 2003. "Estimating Regulation-Induced Substitution: The Effect of the Clean Air Act on Water and Ground Pollution," American Economic Review, American Economic Association, vol. 93(2), pages 442-448, May.
    19. Mian Yang & Yining Yuan & Fuxia Yang & Dalia Patino-Echeverri, 2021. "Effects of environmental regulation on firm entry and exit and China’s industrial productivity: a new perspective on the Porter Hypothesis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 915-944, October.
    20. Utar, Hale & Ruiz, Luis B. Torres, 2013. "International competition and industrial evolution: Evidence from the impact of Chinese competition on Mexican maquiladoras," Journal of Development Economics, Elsevier, vol. 105(C), pages 267-287.
    21. Li, Zhi & Ouyang, Xiaoling & Du, Kerui & Zhao, Yang, 2017. "Does government transparency contribute to improved eco-efficiency performance? An empirical study of 262 cities in China," Energy Policy, Elsevier, vol. 110(C), pages 79-89.
    22. Sugandha D. Tuladhar, Sebastian Mankowski, and Paul Bernstein, 2014. "Interaction Effects of Market-Based and Command-and-Control Policies," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    23. Olivier David Zerbib, 2019. "The effect of pro-environmental preferences on bond prices: Evidence from green bonds," Post-Print halshs-02008641, HAL.
    24. Zerbib, Olivier David, 2019. "The effect of pro-environmental preferences on bond prices: Evidence from green bonds," Journal of Banking & Finance, Elsevier, vol. 98(C), pages 39-60.
    25. Diana M. Burton & Irma A. Gomez & H. Alan Love, 2011. "Environmental Regulation Cost and Industry Structure Changes," Land Economics, University of Wisconsin Press, vol. 87(3), pages 545-557.
    26. Romano, Livio & Traù, Fabrizio, 2017. "The nature of industrial development and the speed of structural change," Structural Change and Economic Dynamics, Elsevier, vol. 42(C), pages 26-37.
    27. Clark, Matthew, 2005. "Corporate environmental behavior research: informing environmental policy," Structural Change and Economic Dynamics, Elsevier, vol. 16(3), pages 422-431, September.
    28. Dieter Ernst, 2000. "Catching-Up and Post-Crisis Industrial Upgrading: Searching for New Sources of Growth in Korea's Electronics Industry," Economics Study Area Working Papers 02, East-West Center, Economics Study Area.
    29. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    30. Linda Bui, 2005. "Public Disclosure of Private Information as a Tool for Regulating Environmental Emissions: Firm-Level Responses by Petroleum Refineries to the Toxics Release Inventory," Working Papers 05-13, Center for Economic Studies, U.S. Census Bureau.
    31. Sarwar, Suleman & Shahzad, Umer & Chang, Dongfeng & Tang, Biyan, 2019. "Economic and non-economic sector reforms in carbon mitigation: Empirical evidence from Chinese provinces," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 146-154.
    32. Fonseka, Mohan & Rajapakse, Theja & Richardson, Grant, 2019. "The effect of environmental information disclosure and energy product type on the cost of debt: Evidence from energy firms in China," Pacific-Basin Finance Journal, Elsevier, vol. 54(C), pages 159-182.
    33. Matthew E. Kahn & Matthew J. Kotchen, 2011. "Business Cycle Effects On Concern About Climate Change: The Chilling Effect Of Recession," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 2(03), pages 257-273.
    34. Brandt, Loren & Thun, Eric, 2016. "Constructing a Ladder for Growth: Policy, Markets, and Industrial Upgrading in China," World Development, Elsevier, vol. 80(C), pages 78-95.
    35. Benjamin F. Blair & Diane Hite, 2005. "The Impact of Environmental Regulations on the Industry Structure of Landfills," Growth and Change, Wiley Blackwell, vol. 36(4), pages 529-550, September.
    36. Justin Wolfers, 2006. "Did Unilateral Divorce Laws Raise Divorce Rates? A Reconciliation and New Results," American Economic Review, American Economic Association, vol. 96(5), pages 1802-1820, December.
    37. Incheol Kim & Hong Wan & Bin Wang & Tina Yang, 2019. "Institutional Investors and Corporate Environmental, Social, and Governance Policies: Evidence from Toxics Release Data," Management Science, INFORMS, vol. 65(10), pages 4901-4926, October.
    38. Pipkin, Seth & Fuentes, Alberto, 2017. "Spurred to Upgrade: A Review of Triggers and Consequences of Industrial Upgrading in the Global Value Chain Literature," World Development, Elsevier, vol. 98(C), pages 536-554.
    39. Clarkson, Peter M. & Li, Yue & Richardson, Gordon D. & Vasvari, Florin P., 2008. "Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 303-327.
    40. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    41. Brian Roe & Ian Sheldon, 2007. "Credence Good Labeling: The Efficiency and Distributional Implications of Several Policy Approaches," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 1020-1033.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Shaohui & Liu, Chuanjiang & Yang, Mian, 2022. "Greening of Chinese industrial sector: Stakeholders' responsiveness to non-governmental environmental monitoring," China Economic Review, Elsevier, vol. 72(C).
    2. Jiaxin Li & Shaoguo Zhan & Teng Huang & Debo Nie, 2022. "The Green Innovation Effect of Environmental Regulation: A Quasi–Natural Experiment from China," Energies, MDPI, vol. 15(20), pages 1-15, October.
    3. Aiwu Zhao & Jingyi Wang & Hongjun Guan, 2022. "Has the Free Trade Zone Construction Promoted the Upgrading of the City’s Industrial Structure?," Sustainability, MDPI, vol. 14(9), pages 1-21, May.
    4. Zhao, Xing & Guo, Yifan & Feng, Tianchu, 2023. "Towards green recovery: Natural resources utilization efficiency under the impact of environmental information disclosure," Resources Policy, Elsevier, vol. 83(C).
    5. Guo, Bingnan & Wang, Yu & Zhang, Hao & Liang, Chunyan & Feng, Yu & Hu, Feng, 2023. "Impact of the digital economy on high-quality urban economic development: Evidence from Chinese cities," Economic Modelling, Elsevier, vol. 120(C).
    6. Li, Changsheng & Qi, Yaping & Liu, Shaohui & Wang, Xu, 2022. "Do carbon ETS pilots improve cities' green total factor productivity? Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 108(C).
    7. Lipeng Sun & Nur Ashikin Mohd Saat, 2023. "How Does Intelligent Manufacturing Affect the ESG Performance of Manufacturing Firms? Evidence from China," Sustainability, MDPI, vol. 15(4), pages 1-20, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Shaohui & Liu, Chuanjiang & Yang, Mian, 2022. "Greening of Chinese industrial sector: Stakeholders' responsiveness to non-governmental environmental monitoring," China Economic Review, Elsevier, vol. 72(C).
    2. Li, Kai & Qi, Shouzhou & Shi, Xunpeng, 2023. "Environmental policies and low-carbon industrial upgrading: Heterogenous effects among policies, sectors, and technologies in China," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    3. Earnhart, Dietrich & Germeshausen, Robert & von Graevenitz, Kathrine, 2022. "Effects of information-based regulation on financial outcomes: Evidence from the European Union's public emission registry," ZEW Discussion Papers 22-015, ZEW - Leibniz Centre for European Economic Research.
    4. Shengjun Zhu & Canfei He, 2016. "Global and local governance, industrial and geographical dynamics: A tale of two clusters," Environment and Planning C, , vol. 34(8), pages 1453-1473, December.
    5. Shi, Jinyan & Yu, Conghui & Li, Yanxi & Wang, Tianhe, 2022. "Does green financial policy affect debt-financing cost of heavy-polluting enterprises? An empirical evidence based on Chinese pilot zones for green finance reform and innovations," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    6. Allen Blackman & Sarah Darley & Thomas P. Lyon & Kris Wernstedt, 2010. "What Drives Participation in State Voluntary Cleanup Programs? Evidence from Oregon," Land Economics, University of Wisconsin Press, vol. 86(4), pages 785-799.
    7. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 577-622, June.
    8. Zhang, Guanglong, 2023. "Regulatory-driven corporate greenwashing: Evidence from “low-carbon city” pilot policy in China," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    9. Huasheng Zhu & Yue Ding, 2017. "Going Public and Industrial Upgrading of Traditional Clusters in Developing Countries: Rethinking the Dynamics of the ‘Jinjiang Model’ in China," Sustainability, MDPI, vol. 9(11), pages 1-18, November.
    10. Yoruk, Deniz E., 2019. "Dynamics of firm-level upgrading and the role of learning in networks in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 341-369.
    11. Manning, Stephan, 2022. "From mainstream to niche: How value regimes shift in emerging economy upgrading," Research Policy, Elsevier, vol. 51(6).
    12. Xinyu Yang & Weidong Liu, 2022. "Agricultural Production Networks and Upgrading from a Global–Local Perspective: A Review," Land, MDPI, vol. 11(10), pages 1-14, October.
    13. Nicholas Powers & Allen Blackman & Thomas Lyon & Urvashi Narain, 2011. "Does Disclosure Reduce Pollution? Evidence from India’s Green Rating Project," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(1), pages 131-155, September.
    14. Andrew Osei Agyemang & Kong Yusheng & Angelina Kissiwaa Twum & Emmanuel Caesar Ayamba & Maxwell Kongkuah & Mohammed Musah, 2021. "Trend and relationship between environmental accounting disclosure and environmental performance for mining companies listed in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 12192-12216, August.
    15. Choksy, Umair Shafi & Ayaz, Muhammad & Al-Tabbaa, Omar & Parast, Mahour, 2022. "Supplier resilience under the COVID-19 crisis in apparel global value chain (GVC): The role of GVC governance and supplier’s upgrading," Journal of Business Research, Elsevier, vol. 150(C), pages 249-267.
    16. Rory Horner, 2022. "Global value chains, import orientation, and the state: South Africa’s pharmaceutical industry," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 68-87, March.
    17. Nicholas, Powers & Blackman, Allen & Lyon, Thomas P. & Narain, Urvashi, 2008. "Does Disclosure Reduce Pollution? Evidence from India’s Green Rating Project," RFF Working Paper Series dp-08-27-efd, Resources for the Future.
    18. Li, Shihan & Liu, Qingfu & Lu, Lei & Zheng, Kaixin, 2022. "Green policy and corporate social responsibility: Empirical analysis of the Green Credit Guidelines in China," Journal of Asian Economics, Elsevier, vol. 82(C).
    19. Kasim, M. Taha, 2017. "Evaluating the effectiveness of an environmental disclosure policy: An application to New South Wales," Resource and Energy Economics, Elsevier, vol. 49(C), pages 113-131.
    20. Sophie van Huellen & Fuad Mohammed Abubakar, 2021. "Potential for Upgrading in Financialised Agri-food Chains: The Case of Ghanaian Cocoa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 227-252, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:58:y:2021:i:c:p:552-561. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/525148 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.