IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i16p10127-d889466.html
   My bibliography  Save this article

Environmental Regulation Promotes Eco-Efficiency through Industrial Transfer: Evidence from the Yangtze River Economic Belt in China

Author

Listed:
  • Yelin Dai

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Yue Liu

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China
    School of Geography, Nanjing Normal University, Nanjing 210042, China)

  • Xuhui Ding

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Chundu Wu

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Yu Chen

    (School of Information Science and Technology, Nanjing Normal University Zhongbei College, Zhenjiang 212300, China)

Abstract

How does environmental regulation affect ecological efficiency? What is the role of industrial transfer in the mechanism of action? Relations and interactions between the three determine economic quality when ecological performance is concerned. Empirical studies in this paper are based on samples from the Yangtze River economic belt in China, which contributes nearly half of China’s GDP. By measuring environmental regulation, industrial transfer, and ecological efficiency, data and indexes are prepared for investigating the driving mechanism of environmental regulation and illustrating of the role of industrial transfer. By applying the Markov process to model industrial transfer between regions, the dynamic of transfer is simulated and facilitates further study on the effects of industrial transfer. Finally, this paper concludes that by targeting on the improvement of ecological efficiency, environmental regulation releases its utility through industrial transfer. The highlights include three aspects. Theoretically, it illustrates the driving mechanism of improving the eco-efficiency by environmental regulation. Technically, it pioneers a methodology for describing the regional industrial transfer by modeling it with a Markov process. Practically, the conclusion supplies insights into the inherent law of sustainable development for policy makers.

Suggested Citation

  • Yelin Dai & Yue Liu & Xuhui Ding & Chundu Wu & Yu Chen, 2022. "Environmental Regulation Promotes Eco-Efficiency through Industrial Transfer: Evidence from the Yangtze River Economic Belt in China," IJERPH, MDPI, vol. 19(16), pages 1-31, August.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:16:p:10127-:d:889466
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/16/10127/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/19/16/10127/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Michael Greenstone & Rema Hanna, 2014. "Environmental Regulations, Air and Water Pollution, and Infant Mortality in India," American Economic Review, American Economic Association, vol. 104(10), pages 3038-3072, October.
    2. Rubashkina, Yana & Galeotti, Marzio & Verdolini, Elena, 2015. "Environmental regulation and competitiveness: Empirical evidence on the Porter Hypothesis from European manufacturing sectors," Energy Policy, Elsevier, vol. 83(C), pages 288-300.
    3. Francesco Testa & Natalia M. Gusmerotti & D. Amirante & Marco Frey, 2012. "The role of negotiating tools in the environmental policy mix instruments: determinants and effects of Environmental Agreement," Working Papers 201202, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
    4. Neves, Sónia Almeida & Marques, António Cardoso & Patrício, Margarida, 2020. "Determinants of CO2 emissions in European Union countries: Does environmental regulation reduce environmental pollution?," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 114-125.
    5. Schou, Poul, 2002. " When Environmental Policy Is Superfluous: Growth and Polluting Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 605-620, December.
    6. Zameer, Hashim & Yasmeen, Humaira & Wang, Rong & Tao, Jing & Malik, Muhammad Nasir, 2020. "An empirical investigation of the coordinated development of natural resources, financial development and ecological efficiency in China," Resources Policy, Elsevier, vol. 65(C).
    7. Sahar Milani, 2017. "The Impact of Environmental Policy Stringency on Industrial R&D Conditional on Pollution Intensity and Relocation Costs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 595-620, November.
    8. Poul Schou, 2002. "When Environmental Policy is Superfluous: Growth and Polluting Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 605-620, December.
    9. Panayotou, Theodore, 1997. "Demystifying the environmental Kuznets curve: turning a black box into a policy tool," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 465-484, November.
    10. Zhu, Runqing & Lin, Boqiang, 2021. "Energy and carbon performance improvement in China's mining Industry:Evidence from the 11th and 12th five-year plan," Energy Policy, Elsevier, vol. 154(C).
    11. van der Werf, Edwin & Di Maria, Corrado, 2012. "Imperfect Environmental Policy and Polluting Emissions: The Green Paradox and Beyond," International Review of Environmental and Resource Economics, now publishers, vol. 6(2), pages 153-194, March.
    12. Viet-Ngu Hoang & Mohammad Alauddin, 2012. "Input-Orientated Data Envelopment Analysis Framework for Measuring and Decomposing Economic, Environmental and Ecological Efficiency: An Application to OECD Agriculture," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(3), pages 431-452, March.
    13. Mayis G. Gulaliyev & Elchin R. Mustafayev & Gulsura Y. Mehdiyeva, 2020. "Assessment of Solar Energy Potential and Its Ecological-Economic Efficiency: Azerbaijan Case," Sustainability, MDPI, vol. 12(3), pages 1-11, February.
    14. Chen, Bin & Jin, Yingmei, 2020. "Adjusting productivity measures for CO2 emissions control: Evidence from the provincial thermal power sector in China," Energy Economics, Elsevier, vol. 87(C).
    15. Hiroshi Kurata & Ryoichi Nomura & Nobuhito Suga, 2020. "Vertical specialization in North–South trade: Industrial relocation, wage and welfare," Review of International Economics, Wiley Blackwell, vol. 28(1), pages 119-137, February.
    16. Shuangjie Li & Wei Wang & Hongyu Diao & Liming Wang, 2022. "Measuring the Efficiency of Energy and Carbon Emissions: A Review of Definitions, Models, and Input-Output Variables," Energies, MDPI, vol. 15(3), pages 1-21, January.
    17. Liu, Yue & Tian, Lixin & Sun, Huaping & Zhang, Xiling & Kong, Chuimin, 2022. "Option pricing of carbon asset and its application in digital decision-making of carbon asset," Applied Energy, Elsevier, vol. 310(C).
    18. Jale Tosun & Laura Zöckler & Benedikt Rilling, 2019. "What Drives the Participation of Renewable Energy Cooperatives in European Energy Governance?," Politics and Governance, Cogitatio Press, vol. 7(1), pages 45-59.
    19. Galinato, Gregmar I. & Chouinard, Hayley H., 2018. "Strategic interaction and institutional quality determinants of environmental regulations," Resource and Energy Economics, Elsevier, vol. 53(C), pages 114-132.
    20. Yue Liu & Lixin Tian & Zhuyun Xie & Zaili Zhen & Huaping Sun, 2021. "Option to survive or surrender: carbon asset management and optimization in thermal power enterprises from China," Papers 2104.04729, arXiv.org.
    21. Marta Kubacka, 2019. "Evaluation of the ecological efficiency of landscape protection in areas of different protection status. A case study from Poland," Landscape Research, Taylor & Francis Journals, vol. 44(5), pages 628-641, July.
    22. Al-mulali, Usama & Foon Tang, Chor, 2013. "Investigating the validity of pollution haven hypothesis in the gulf cooperation council (GCC) countries," Energy Policy, Elsevier, vol. 60(C), pages 813-819.
    23. Hickel, Jason, 2020. "The sustainable development index: Measuring the ecological efficiency of human development in the anthropocene," Ecological Economics, Elsevier, vol. 167(C).
    24. J Sarkis & J J Cordeiro, 2009. "Investigating technical and ecological efficiencies in the electricity generation industry: are there win-win opportunities?," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(9), pages 1160-1172, September.
    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. Sara Majid & Xin Zhang & Muhammad Bilawal Khaskheli & Feng Hong & Patricia Jie Hung King & Imran Haider Shamsi, 2023. "Eco-Efficiency, Environmental and Sustainable Innovation in Recycling Energy and Their Effect on Business Performance: Evidence from European SMEs," Sustainability, MDPI, vol. 15(12), pages 1-30, June.
    2. Xuhui Ding & Yong Chen & Min Li & Narisu Liu, 2022. "Booster or Killer? Research on Undertaking Transferred Industries and Residents’ Well-Being Improvements," IJERPH, MDPI, vol. 19(22), pages 1-19, November.

    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. Kedong Yin & Lu Liu & Haolei Gu, 2022. "Green Paradox or Forced Emission Reduction—The Dual Effects of Environmental Regulation on Carbon Emissions," IJERPH, MDPI, vol. 19(17), pages 1-15, September.
    2. Liu, Duan & Yu, Nizhou & Wan, Hong, 2022. "Does water rights trading affect corporate investment? The role of resource allocation and risk mitigation channels," Economic Modelling, Elsevier, vol. 117(C).
    3. Carrilho-Nunes, Inês & Catalão-Lopes, Margarida, 2022. "The effects of environmental policy and technology transfer on GHG emissions: The case of Portugal," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 255-264.
    4. Grimaud, Andre & Rouge, Luc, 2005. "Polluting non-renewable resources, innovation and growth: welfare and environmental policy," Resource and Energy Economics, Elsevier, vol. 27(2), pages 109-129, June.
    5. Ren, Shenggang & Hu, Yucai & Zheng, Jingjing & Wang, Yangjie, 2020. "Emissions trading and firm innovation: Evidence from a natural experiment in China," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    6. 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).
    7. Wunhong Su & Chun Guo & Xiaobao Song, 2022. "Media coverage, Environment Protection Law and environmental research and development: evidence from the Chinese-listed firms," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6953-6983, May.
    8. Tang, Maogang & Li, Xiuzhen & Zhang, Yun & Wu, Yingtao & Wu, Baijun, 2020. "From command-and-control to market-based environmental policies: Optimal transition timing and China’s heterogeneous environmental effectiveness," Economic Modelling, Elsevier, vol. 90(C), pages 1-10.
    9. Yuping Deng & Yanrui Wu & Helian Xu, 2019. "Environmental Regulation and Export Product Quality: Evidence from Chinese Firms," Economics Discussion / Working Papers 19-14, The University of Western Australia, Department of Economics.
    10. Grimaud, André & Rouge, Luc, 2014. "Carbon sequestration, economic policies and growth," Resource and Energy Economics, Elsevier, vol. 36(2), pages 307-331.
    11. Beladi, Hamid & Chao, Chi-Chur & Hazari, Bharat R. & Laffargue, Jean-Pierre, 2009. "Tourism and the environment," Resource and Energy Economics, Elsevier, vol. 31(1), pages 39-49, January.
    12. Juergen Antony, 2007. "Depletion of Non-Renewable Resources and Endogenous Technical Change," Working Papers 027, Bavarian Graduate Program in Economics (BGPE).
    13. Pautrel, Xavier, 2012. "Environmental Policy, Education And Growth: A Reappraisal When Lifetime Is Finite," Macroeconomic Dynamics, Cambridge University Press, vol. 16(5), pages 661-685, November.
    14. Maciej Malaczewski, 2019. "Household Ecological Preferences and Renewable Energy Spending," Prague Economic Papers, Prague University of Economics and Business, vol. 2019(4), pages 465-478.
    15. Zhigang Pei & Jiaming Chen & Jun Fang & Jiangpeng Fan & Zhilan Gong & Qingying Zheng, 2023. "The Impact of “Dual-Control” Regulations on the Green Total Factor Efficiency of Shaoxing’s Industrial Sector," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    16. Wei Jin & ZhongXiang Zhang, 2018. "Capital Accumulation, Green Paradox, and Stranded Assets: An Endogenous Growth Perspective," Working Papers 2018.33, Fondazione Eni Enrico Mattei.
    17. Marius Bulearca & Cristian Sima, 2015. "IDENTIFYING THE ENVIRONMENTAL ISSUES IN EXTRACTIVE INDUSTRY (International Conference “EUROPEAN PERSPECTIVE OF LABOR MARKET - INOVATION, EXPERTNESS, PERFORMANCE”)," Institute for Economic Forecasting Conference Proceedings 141102, Institute for Economic Forecasting.
    18. Pittel, Karen & Amigues, Jean-Pierre & Kuhn, Thomas, 2010. "Recycling under a material balance constraint," Resource and Energy Economics, Elsevier, vol. 32(3), pages 379-394, August.
    19. Tao, Zhang & Huang, Xiao Yue & Dang, Yi Jing & Qiao, Sen, 2022. "The impact of factor market distortions on profit sustainable growth of Chinese renewable energy enterprises: The moderating effect of environmental regulation," Renewable Energy, Elsevier, vol. 200(C), pages 1068-1080.
    20. Karen Pittel & Lucas Bretschger, 2010. "The implications of heterogeneous resource intensities on technical change and growth," Canadian Journal of Economics, Canadian Economics Association, vol. 43(4), pages 1173-1197, November.

    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:gam:jijerp:v:19:y:2022:i:16:p:10127-:d:889466. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.