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Dynamic Impact of Environmental Regulation on Environmental Performance in China: New Evidence from a Semiparametric Additive Panel Analysis

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  • Xinjin Li

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
    Student Affairs Office, Shandong Technology and Business University, Yantai 264005, China)

  • Ruyin Long

    (The Institute for Jiangnan Culture, Jiangnan University, Wuxi 214122, China
    School of Business, Jiangnan University, Wuxi 214122, China)

Abstract

Environmental protection is the core of sustainable economic development, and environmental policy plays a key role in achieving protection goals. Therefore, it is extremely crucial to evaluate the effectiveness of environmental policies. Existing studies mainly focus on the average impact of environmental policies on environmental pollution but ignore their dynamic impact, which is prone to misestimate the effect of environmental policies. To make up for the deficiency, a semiparametric additive panel data model is used to explore the dynamic impact of China’s sewage charging policy on environmental performance at each level of the levy. The results show that the relationship between sewage charge level and environmental degeneration is an “M-shaped” pattern, indicating that the current sewage charge policy is not absolutely effective. Moreover, the results also reveal an “N-shaped” linkage between economic growth and environmental pollution, indicating that economic development is not sustainable. Moreover, the factors of energy consumption, population growth, and industrialization contribute to increasing environmental degeneration. Although technological development has a positive impact on environmental performance, its impact is insignificant. This study could provide new evidence for strengthening environmental regulatory reform and promoting green economic development.

Suggested Citation

  • Xinjin Li & Ruyin Long, 2021. "Dynamic Impact of Environmental Regulation on Environmental Performance in China: New Evidence from a Semiparametric Additive Panel Analysis," Sustainability, MDPI, vol. 13(18), pages 1-14, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:18:p:10069-:d:631570
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    References listed on IDEAS

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    1. Zhang, Ren Jie & Razzaq, Asif, 2022. "Influence of economic policy uncertainty and financial development on renewable energy consumption in the BRICST region," Renewable Energy, Elsevier, vol. 201(P1), pages 526-533.

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