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Environmental regulation and household economic resilience: Effects and mechanisms

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  • Yan, Xinyi
  • Xie, Kun
  • Zhang, Yurui

Abstract

Although environmental regulation has been widely examined at the firm, industry, and regional levels, its implications for household-level economic resilience remain insufficiently understood. Using panel data from the China Household Finance Survey (CHFS) from 2013 to 2019, this paper estimates fixed-effects models to examine whether and how environmental regulation affects household economic resilience. We find that environmental regulation strengthens household economic resilience, and this finding remains robust across alternative specifications and measures. Mechanism analysis suggests that the effect operates partly through improvements in residents' health status. Development strategies that deviate from comparative advantage weaken this positive effect, whereas higher educational attainment among household members strengthens it. Further analysis shows that agricultural non-point source pollution control is associated with greater economic resilience among rural households. These findings provide household-level evidence on the welfare effects of environmental regulation and offer implications for more differentiated environmental policy design.

Suggested Citation

  • Yan, Xinyi & Xie, Kun & Zhang, Yurui, 2026. "Environmental regulation and household economic resilience: Effects and mechanisms," Economic Analysis and Policy, Elsevier, vol. 92(C), pages 702-717.
    • Handle: RePEc:eee:ecanpo:v:92:y:2026:i:c:p:702-717
    DOI: 10.1016/j.eap.2026.06.028
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