IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i13p5331-d1420393.html
   My bibliography  Save this article

How Environmental Regulation Affects Pollution Reduction and Carbon Reduction Synergies—An Empirical Analysis Based on Chinese Provincial Data

Author

Listed:
  • Wei Shi

    (College of Geography and Environmental Science, Northwest Normal University, Lanzhou 730070, China)

  • Weijuan Wang

    (College of Geography and Environmental Science, Northwest Normal University, Lanzhou 730070, China)

  • Wenwen Tang

    (College of Geography and Environmental Science, Northwest Normal University, Lanzhou 730070, China)

  • Fuwei Qiao

    (College of Economic, Northwest Normal University, Lanzhou 730070, China)

  • Guowei Zhang

    (College of Geography and Environmental Science, Northwest Normal University, Lanzhou 730070, China)

  • Runzhu Pei

    (College of Geography and Environmental Science, Northwest Normal University, Lanzhou 730070, China)

  • Luyao Zhang

    (College of Geography and Environmental Science, Northwest Normal University, Lanzhou 730070, China)

Abstract

Faced with the dual challenges of environmental pollution and climate change, it is of great significance to study the impact of relevant environmental regulations on the synergistic effect of pollution reduction and carbon emission reduction and their influence mechanisms. Based on a theoretical analysis using the panel data of 30 provinces in China, a spatial econometric model and an intermediary effect model are used to investigate the impact of environmental regulations on the synergistic effect of pollution reduction and carbon reduction and the transmission mechanisms potentially responsible for these effects. The empirical results show the following: (1) The three kinds of environmental regulation effectively facilitate the synergistic effect of pollution reduction and carbon reduction, taking the following order when ranked according to the intensity of their effects: command-type environmental regulation (ER1) > market-based environmental regulation (ER2) > voluntary environmental regulation (ER3). (2) Environmental regulation effectively promotes the synergistic effect of pollution and carbon reduction through the three transmission mechanisms of stimulating technological innovation (TI), industrial structure upgrading (ISU), and restricting foreign direct investment (FDI), which take the following effectiveness order: TI > FDI > ISU. Based on the results of the study, policy suggestions to facilitate pollution reduction and carbon synergies are proposed to help China’s green and low-carbon development.

Suggested Citation

  • Wei Shi & Weijuan Wang & Wenwen Tang & Fuwei Qiao & Guowei Zhang & Runzhu Pei & Luyao Zhang, 2024. "How Environmental Regulation Affects Pollution Reduction and Carbon Reduction Synergies—An Empirical Analysis Based on Chinese Provincial Data," Sustainability, MDPI, vol. 16(13), pages 1-24, June.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:13:p:5331-:d:1420393
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/13/5331/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/13/5331/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Huilin Yang & Rui Yao & Peng Sun & Chenhao Ge & Zice Ma & Yaojin Bian & Ruilin Liu, 2023. "Spatiotemporal Evolution and Driving Forces of PM 2.5 in Urban Agglomerations in China," IJERPH, MDPI, vol. 20(3), pages 1-15, January.
    2. Ronald Shadbegian & Wayne Gray, 2006. "Assessing multi-dimensional performance: environmental and economic outcomes," Journal of Productivity Analysis, Springer, vol. 26(3), pages 213-234, December.
    3. Bao, Qun & Shao, Min & Yang, Dali, 2021. "Environmental regulation, local legislation and pollution control in China," Environment and Development Economics, Cambridge University Press, vol. 26(4), pages 321-339, August.
    4. Weijiang Liu & Mingze Du & Yuxin Bai, 2021. "Mechanisms of Environmental Regulation’s Impact on Green Technological Progress—Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 13(4), pages 1-23, February.
    5. Johan Graafland & Lans Bovenberg, 2020. "Government regulation, business leaders’ motivations and environmental performance of SMEs," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 63(8), pages 1335-1355, July.
    6. Kelley Pace, R. & LeSage, James P., 2008. "A spatial Hausman test," Economics Letters, Elsevier, vol. 101(3), pages 282-284, December.
    7. Yang Li & Lei Zhang, 2023. "Collaborative Governance and Environmental Regulation Measures for Pollution Reduction and Carbon Reduction in the Yangtze River Basin under the “Double Carbon” Goal," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    8. Qian Zhang & Decai Tang & Brandon J. Bethel, 2021. "Impact of Urbanization on the Environmental Regulation Efficiency in the Yangtze River Basin Based on the Empirical Analysis of Spatial Econometrics," IJERPH, MDPI, vol. 18(17), pages 1-20, August.
    9. Ronald Shadbegian & Wayne Gray, 2006. "Assessing multi-dimensional performance: environmental and economic outcomes," Journal of Productivity Analysis, Springer, vol. 26(3), pages 213-234, December.
    10. Kuersteiner, Guido M., 2019. "Invariance principles for dependent processes indexed by Besov classes with an application to a Hausman test for linearity," Journal of Econometrics, Elsevier, vol. 211(1), pages 243-261.
    11. Hu, Jun & Wu, Huiying & Ying, Sammy Xiaoyan, 2022. "Environmental regulation, market forces, and corporate environmental responsibility: Evidence from the implementation of cleaner production standards in China," Journal of Business Research, Elsevier, vol. 150(C), pages 606-622.
    12. Yanyun Li & Faqin Lin & Wenxiao Wang, 2022. "Environmental regulation and inward foreign direct investment: Evidence from the eleventh Five‐Year Plan in China," Journal of Economic Surveys, Wiley Blackwell, vol. 36(3), pages 684-707, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martin, Ralf & Muûls, Mirabelle & de Preux, Laure B. & Wagner, Ulrich J., 2012. "Anatomy of a paradox: Management practices, organizational structure and energy efficiency," Journal of Environmental Economics and Management, Elsevier, vol. 63(2), pages 208-223.
    2. Fraas, Art & Egorenkov, Alex, 2015. "A Retrospective Study of EPA’s Air Toxics Program under the Revised Section 112 Requirements of the Clean Air Act," RFF Working Paper Series dp-15-23, Resources for the Future.
    3. Yang Li & Jingjing Pei & Fang Zhang, 2023. "Comprehensive Ecological Planning and Evaluation of Towns from the Perspective of Sustainable Development," Sustainability, MDPI, vol. 15(14), pages 1-18, July.
    4. Yoshifumi Konishi & Nori Tarui, 2015. "Emissions Trading, Firm Heterogeneity, and Intra-industry Reallocations in the Long Run," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(1), pages 1-42.
    5. Quoc Tran-Nam & Phu Nguyen-Van & Tuyen Tiet, 2025. "Synergy in environmental compliance, innovation and export on SMEs’ growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 34(1), pages 138-162, January.
    6. Leonardo Becchetti & Giovanni Trovato, 2011. "Corporate social responsibility and firm efficiency: a latent class stochastic frontier analysis," Journal of Productivity Analysis, Springer, vol. 36(3), pages 231-246, December.
    7. Gray, Wayne B. & Shadbegian, Ronald J. & Wang, Chunbei & Meral, Merve, 2014. "Do EPA regulations affect labor demand? Evidence from the pulp and paper industry," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 188-202.
    8. Fleishman, Rachel & Alexander, Rob & Bretschneider, Stuart & Popp, David, 2009. "Does regulation stimulate productivity? The effect of air quality policies on the efficiency of US power plants," Energy Policy, Elsevier, vol. 37(11), pages 4574-4582, November.
    9. Shital Sharma, 2013. "Environmental Regulation, Abatement, and Productivity: A Frontier Analysis," Working Papers 13-51, Center for Economic Studies, U.S. Census Bureau.
    10. Dechezleprêtre, Antoine & Kozluk, Tomasz & Kruse, Tobias & Nachtigall, Daniel & de Serres, Alain, 2019. "Do Environmental and Economic Performance Go Together? A Review of Micro-level Empirical Evidence from the Past Decade or So," International Review of Environmental and Resource Economics, now publishers, vol. 13(1-2), pages 1-118, April.
    11. Leonardo Becchetti & Rocco Ciciretti, 2009. "Corporate social responsibility and stock market performance," Applied Financial Economics, Taylor & Francis Journals, vol. 19(16), pages 1283-1293.
    12. Thanh Tam Nguyen-Huu & Khac Minh Nguyen & Quoc Tran-Nam, 2022. "The role of environmental practices and innovation in total factor productivity convergence -Evidence from small-and medium-sized manufacturing enterprises in Vietnam," Post-Print hal-04248191, HAL.
    13. Bethany DeSalvo & Frank F. Limehouse & Shawn D. Klimek, 2016. "Documenting the Business Register and Related Economic Business Data," Working Papers 16-17, Center for Economic Studies, U.S. Census Bureau.
    14. Claudia Poser & Edeltraud Guenther & Marc Orlitzky, 2012. "Shades of green: using computer-aided qualitative data analysis to explore different aspects of corporate environmental performance," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(4), pages 413-450, January.
    15. Mircea Epure, 2022. "Corporate social responsibility as a signaling technology," Review of Managerial Science, Springer, vol. 16(3), pages 907-930, April.
    16. Dietrich Earnhart & Sandra Rousseau, 2024. "Sanctioning environmental offenses committed by companies: the joint use of firm and employee sanctions," European Journal of Law and Economics, Springer, vol. 58(1), pages 71-118, August.
    17. Becchetti, Leonardo & Ciciretti, Rocco & Giovannelli, Alessandro, 2013. "Corporate social responsibility and earnings forecasting unbiasedness," Journal of Banking & Finance, Elsevier, vol. 37(9), pages 3654-3668.
    18. Joshua Linn & Erin Mastrangelo & Dallas Burtraw, 2014. "Regulating Greenhouse Gases from Coal Power Plants under the Clean Air Act," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 1(1), pages 97-134.
    19. Thanh Tam Nguyen-Huu & Minh Nguyen-Khac & Quoc Tran-Nam, 2017. "The role of environmental regulations and innovation in TFP convergence: Evidence from manufacturing SMEs in Vietnam," WIDER Working Paper Series 092, World Institute for Development Economic Research (UNU-WIDER).
    20. 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:13:p:5331-:d:1420393. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.