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The Linkage Mechanism between Environment-Related Rules and Environment-Related Efficiency of Industries in China: An Analysis Based on the Adaptive Semi-Parametric Panel Model

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  • Di Wang

    (School of Government, Peking University, Beijing 100871, China)

Abstract

This study employed the adaptive semi-parameter model to determine the effects of environment-related rules (environment-related rules refer to laws and regulations in relation to environmental protection) on environment-related efficiency (environment-related efficiency refers to the environmental efficiency of a wide range of industries). In addition, the threshold regression model was employed to determine the industry threshold effect of environment-related rules on environment-related efficiency. The following conclusions were primarily drawn: (1) A U-shaped curve relationship was identified between the effect of environment-related rules and the environment-related efficiency of the broader national industry; (2) A threshold effect is exerted on environment-related efficiency, and under the effect exerted by environment-related rule below the lower limit of the optimal interval, environment-related rule policies cannot play a corresponding role, while the effect of environment-related rules is high. When the upper limit of the optimal interval is set, environment-related rules will exert extensively strong effects, which leads to the unsustainable development of the industry and distorts the industry’s development. The government is required to roll out different environment-related rule policies in accordance with the industry differences and the development stages of respective industries, fully exploit such environment-related rule policies for industries and technologies, optimize the environment-related rules system, and harmoniously advance industries, the economy, and the environment. Given the empirical results, it is critical to enhance the effect exerted by environment-related rules in the mining and manufacturing industries, elevate their technical level, and develop a positive relationship between the effect exerted by environment-related rules and environment-related efficiency enhancements. While China’s current environment-related rule policy imposes no discrimination between pollution-intensive industries and cleaner production industries, these industries should be treated differently in the days ahead.

Suggested Citation

  • Di Wang, 2021. "The Linkage Mechanism between Environment-Related Rules and Environment-Related Efficiency of Industries in China: An Analysis Based on the Adaptive Semi-Parametric Panel Model," Sustainability, MDPI, vol. 13(11), pages 1-26, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:11:p:6203-:d:566403
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