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Environmental compliance and human capital: Evidence from Chinese industrial firms

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  • Lan, Jing
  • Munro, Alistair

Abstract

By using a unique cross-sectional dataset of Chinese industrial firms, this paper investigates the external and internal effects of human capital on firms’ environmental performance. The result shows that firms have better environmental compliance because they are ‘pushed’ into compliance by the internal driver of human capital and ‘pulled’ to be environmental friendly by the external force of social human capital stock. This finding is robust when we take into account the possible endogeneity of human capital. In addition, evidence from this study suggests that the current situation of weak implementation of environmental supervision and evasion of environmental monitoring could be improved by promotion of internal and external human capital.

Suggested Citation

  • Lan, Jing & Munro, Alistair, 2013. "Environmental compliance and human capital: Evidence from Chinese industrial firms," Resource and Energy Economics, Elsevier, vol. 35(4), pages 534-557.
  • Handle: RePEc:eee:resene:v:35:y:2013:i:4:p:534-557
    DOI: 10.1016/j.reseneeco.2013.05.003
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    Cited by:

    1. Woo-Yong Song & Bongsuk Sung, 2014. "Environmental regulations and the export performance of South Korean manufacturing industries: A dynamic panel approach," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(7), pages 923-945, October.
    2. Yao, Yao & Ivanovski, Kris & Inekwe, John & Smyth, Russell, 2019. "Human capital and energy consumption: Evidence from OECD countries," Energy Economics, Elsevier, vol. 84(C).
    3. Yao, Yao & Ivanovski, Kris & Inekwe, John & Smyth, Russell, 2020. "Human capital and CO2 emissions in the long run," Energy Economics, Elsevier, vol. 91(C).
    4. Athanasios Lapatinas & Anastasia Litina & Eftichios Sophocles Sartzetakis, 2019. "Environmental projects in the presence of corruption," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(1), pages 103-144, February.
    5. Dohyung Kim & Sun Go, 2020. "Human Capital and Environmental Sustainability," Sustainability, MDPI, Open Access Journal, vol. 12(11), pages 1-14, June.
    6. Zhang, Jinning & Wang, Jianlong & Yang, Xiaodong & Ren, Siyu & Ran, Qiying & Hao, Yu, 2021. "Does local government competition aggravate haze pollution? A new perspective of factor market distortion," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    7. Lan, Jing & Munro, Alistair & Liu, Zhen, 2017. "Environmental regulatory stringency and the market for abatement goods and services in China," Resource and Energy Economics, Elsevier, vol. 50(C), pages 105-123.
    8. Samuel Adomako & Nguyen Phong Nguyen, 2020. "Human resource slack, sustainable innovation, and environmental performance of small and medium‐sized enterprises in sub‐Saharan Africa," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 2984-2994, December.
    9. Huang, Caihong & Zhang, Xiaoqing & Liu, Kai, 2021. "Effects of human capital structural evolution on carbon emissions intensity in China: A dual perspective of spatial heterogeneity and nonlinear linkages," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).

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    More about this item

    Keywords

    Environmental compliance; Human capital; External and internal effects; Endogeneity;
    All these keywords.

    JEL classification:

    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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