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Industrial activity and the environment in China: An industry-level analysis

  • Cole, Matthew A.
  • Elliott, Robert J.R.
  • Wu, Shanshan

Given China's rapid industrial expansion a detailed understanding of the linkages through which industrial activity affects the environment is crucial if the resultant environmental impact is to be minimised. This paper utilises a dataset of Chinese industry specific emissions for a variety of pollutants between 1997 and 2003 to provide the first study of its kind for China. We find an industry's emissions to be a positive function of its energy use and human capital intensity and a negative function of its productivity and R&D expenditure. We also investigate the role played by environmental regulations, both formal and informal.

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Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 19 (2008)
Issue (Month): 3 (September)
Pages: 393-408

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Handle: RePEc:eee:chieco:v:19:y:2008:i:3:p:393-408
Contact details of provider: Web page: http://www.elsevier.com/locate/chieco

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  1. Wayne B Gray & Ronald J Shadbegian, 2001. "Plant Vintage, Technology, and Environmental Regulation," Working Papers 01-08, Center for Economic Studies, U.S. Census Bureau.
  2. Cole, Matthew A. & Elliott, Robert J. R., 2003. "Determining the trade-environment composition effect: the role of capital, labor and environmental regulations," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 363-383, November.
  3. Vernon Henderson, 1995. "Effects of Air Quality Regulation," NBER Working Papers 5118, National Bureau of Economic Research, Inc.
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  5. Pargal, Sheoli & Wheeler, David, 1996. "Informal Regulation of Industrial Pollution in Developing Countries: Evidence from Indonesia," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1314-27, December.
  6. Hua Wang & Nlandu Mamingi & Benoit Laplante & Susmita Dasgupta, 2003. "Incomplete Enforcement of Pollution Regulation: Bargaining Power of Chinese Factories," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(3), pages 245-262, March.
  7. Matthew E. Kahn, 1998. "The Silver Lining of Rust Belt Manufacturing Decline," Harvard Institute of Economic Research Working Papers 1828, Harvard - Institute of Economic Research.
  8. Ronald J. Shadbegian & Wayne B. Gray, 2002. "When Do Firms Shift Production Across State to Avoid Environmental Regulation?," NCEE Working Paper Series 200202, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Feb 2002.
  9. Gianessi, Leonard P & Peskin, Henry M & Wolff, Edward, 1979. "The Distributional Effects of Uniform Air Pollution Policy in the United States," The Quarterly Journal of Economics, MIT Press, vol. 93(2), pages 281-301, May.
  10. Wayne B. Gray & Ronald J. Shadbegian, 1995. "Pollution Abatement Costs, Regulation, and Plant-Level Productivity," NBER Working Papers 4994, National Bureau of Economic Research, Inc.
  11. Mody, Ashoka & Roy, Subhendu & Wheeler, David & Dasgupta, Susmita, 1995. "Environmental regulation and development : a cross-country empirical analysis," Policy Research Working Paper Series 1448, The World Bank.
  12. Wayne B. Gray & Ronald J. Shadbegian, 2002. "Optimal Pollution Abatement - Whose Benefits Matter, and How Much?," NBER Working Papers 9125, National Bureau of Economic Research, Inc.
  13. Gollop, Frank M & Roberts, Mark J, 1983. "Environmental Regulations and Productivity Growth: The Case of Fossil-Fueled Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 654-74, August.
  14. Cole, Matthew A. & Elliott, Robert J.R. & Shimamoto, Kenichi, 2005. "Industrial characteristics, environmental regulations and air pollution: an analysis of the UK manufacturing sector," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 121-143, July.
  15. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 1998. "Is Free Trade Good for the Environment?," NBER Working Papers 6707, National Bureau of Economic Research, Inc.
  16. Levinson, Arik, 1996. "Environmental regulations and manufacturers' location choices: Evidence from the Census of Manufactures," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 5-29, October.
  17. Hua Wang & Wheeler, David, 2000. "Endogenous enforcement and effectiveness of China's pollution levy system," Policy Research Working Paper Series 2336, The World Bank.
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