IDEAS home Printed from https://ideas.repec.org/a/kap/compec/v54y2019i4d10.1007_s10614-016-9570-7.html
   My bibliography  Save this article

Hidden Carbon Emissions, Industrial Clusters, and Structure Optimization in China

Author

Listed:
  • Shu-Hong Wang

    (Ocean University of China)

  • Ma-Lin Song

    (Xiamen University)

  • Tao Yu

    (Nankai University of China)

Abstract

Vertical specialized trade has become more important globally because of the prevalence of a vertical specialization production mode. Therefore, it is essential to research the relationships between the carbon emissions of intermediate products which have rarely been considered in the field of trading and environmental protection. By establishing a theoretical model for industrial clusters and environmental regulations, this article proved that labor productivity, environmental regulations, and environmental elements productivity were key factors that affected the industrial cluster. Then, in the measurement model established, the key indicators of theoretical model were collected and the effects of factors such as hidden carbon emissions, the degree of vertical specialization, and the different labor–wage ratio on industrial clusters are measured. The article concluded that China has to consider the environment when vigorously advancing the industrial cluster thereby realizing a symbiotic development. The article also carried out an environmental super-efficiency evaluation on the structure of each industry in hope of finding out the direction of optimization of industrial structure.

Suggested Citation

  • Shu-Hong Wang & Ma-Lin Song & Tao Yu, 2019. "Hidden Carbon Emissions, Industrial Clusters, and Structure Optimization in China," Computational Economics, Springer;Society for Computational Economics, vol. 54(4), pages 1319-1342, December.
  • Handle: RePEc:kap:compec:v:54:y:2019:i:4:d:10.1007_s10614-016-9570-7
    DOI: 10.1007/s10614-016-9570-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10614-016-9570-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10614-016-9570-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Amador, João & Cabral, Sónia, 2009. "Vertical specialization across the world: A relative measure," The North American Journal of Economics and Finance, Elsevier, vol. 20(3), pages 267-280, December.
    2. Quiroga, Miguel & Sterner, Thomas & Persson, Martin, 2007. "Have Countries with Lax Environmental Regulations a Comparative Advantage in Polluting Industries?," RFF Working Paper Series dp-07-08, Resources for the Future.
    3. Rodney D. Ludema & Ian Wooton, 1994. "Cross-Border Externalities and Trade Liberalization: The Strategic Control of Pollution," Canadian Journal of Economics, Canadian Economics Association, vol. 27(4), pages 950-966, November.
    4. Judith M. Dean & Mary E. Lovely, 2010. "Trade Growth, Production Fragmentation, and China's Environment," NBER Chapters, in: China's Growing Role in World Trade, pages 429-469, National Bureau of Economic Research, Inc.
    5. Wheeler, David, 2001. "Racing to the bottom : foreign investment and air pollution in developing countries," Policy Research Working Paper Series 2524, The World Bank.
    6. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    7. List, John A. & Co, Catherine Y., 2000. "The Effects of Environmental Regulations on Foreign Direct Investment," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 1-20, July.
    8. Yu, Shiwei & Wei, Yi-Ming & Guo, Haixiang & Ding, Liping, 2014. "Carbon emission coefficient measurement of the coal-to-power energy chain in China," Applied Energy, Elsevier, vol. 114(C), pages 290-300.
    9. Akbostanci, Elä°F & Tunã‡, G. Ä°Pek & Tãœrãœt-Aåžik, Serap, 2007. "Pollution haven hypothesis and the role of dirty industries in Turkey's exports," Environment and Development Economics, Cambridge University Press, vol. 12(2), pages 297-322, April.
    10. Hampf, Benjamin & Rødseth, Kenneth Løvold, 2015. "Carbon dioxide emission standards for U.S. power plants: An efficiency analysis perspective," Energy Economics, Elsevier, vol. 50(C), pages 140-153.
    11. Wang, Shu-Hong & Song, Ma-Lin, 2014. "Review of hidden carbon emissions, trade, and labor income share in China, 2001–2011," Energy Policy, Elsevier, vol. 74(C), pages 395-405.
    12. Ion Dobre & Adriana AnaMaria Alexandru, 2009. "The Impact of Unemployment Rate on the Dimension of Shadow Economy in Spain: A Structural Equation Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 179-197.
    13. Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1091-1135.
    14. Matthew A. Cole & Robert J. R. Elliott, 2005. "FDI and the Capital Intensity of “Dirty” Sectors: A Missing Piece of the Pollution Haven Puzzle," Review of Development Economics, Wiley Blackwell, vol. 9(4), pages 530-548, November.
    15. Zeng, Dao-Zhi & Zhao, Laixun, 2009. "Pollution havens and industrial agglomeration," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 141-153, September.
    16. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
    17. Eskeland, Gunnar S. & Harrison, Ann E., 2003. "Moving to greener pastures? Multinationals and the pollution haven hypothesis," Journal of Development Economics, Elsevier, vol. 70(1), pages 1-23, February.
    18. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, vol. 91(4), pages 877-908, September.
    19. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    20. Miguel Angel Quiroga & Martin Persson & Thomas Sterner, 2009. "Do Countries with Lax Environmental Regulations Have a Comparative Advantage in Polluting Industries?," Working Papers 03-2009, Departamento de Economía, Universidad de Concepción.
    21. Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," NBER Working Papers 7828, National Bureau of Economic Research, Inc.
    22. Zhu, Zhi-Shuang & Liao, Hua & Cao, Huai-Shu & Wang, Lu & Wei, Yi-Ming & Yan, Jinyue, 2014. "The differences of carbon intensity reduction rate across 89 countries in recent three decades," Applied Energy, Elsevier, vol. 113(C), pages 808-815.
    23. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sultana, Nahid & Rahman, Mohammad Mafizur & Khanam, Rasheda & Islam, K.M. Zahidul, 2022. "The causative factors of environmental degradation in South Asia," Journal of Asian Economics, Elsevier, vol. 79(C).

    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. Wen Jun & Muhammad Zakaria & Syed Jawad Hussain Shahzad & Hamid Mahmood, 2018. "Effect of FDI on Pollution in China: New Insights Based on Wavelet Approach," Sustainability, MDPI, vol. 10(11), pages 1-20, October.
    2. Antoine Dechezleprêtre & Misato Sato, 2017. "The Impacts of Environmental Regulations on Competitiveness," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 11(2), pages 183-206.
    3. Svetlana Batrakova & Ronald Davies, 2012. "Is there an environmental benefit to being an exporter? Evidence from firm-level data," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(3), pages 449-474, September.
    4. Natalia Zugravu-Soilita, 2017. "How does Foreign Direct Investment Affect Pollution? Toward a Better Understanding of the Direct and Conditional Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(2), pages 293-338, February.
    5. Ben Kheder, Sonia & Zugravu, Natalia, 2012. "Environmental regulation and French firms location abroad: An economic geography model in an international comparative study," Ecological Economics, Elsevier, vol. 77(C), pages 48-61.
    6. Fabrice Darrigues & Jean-Marc Montaud, 2011. "Trade liberalization, environmental regulation and self-regulation of multinational firms," Working Papers hal-01880351, HAL.
    7. Malin Song & Shuhong Wang & Kaiya Wu, 2018. "Environment-biased technological progress and industrial land-use efficiency in China’s new normal," Annals of Operations Research, Springer, vol. 268(1), pages 425-440, September.
    8. Sonia Ben Kheder & Natalia Zugravu, 2008. "The pollution haven hypothesis: a geographic economy model in a comparative study," Documents de travail du Centre d'Economie de la Sorbonne v08083, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    9. Xiao Chen & Alan Woodland, 2013. "International trade and climate change," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(3), pages 381-413, June.
    10. Jing Lan & Makoto Kakinaka & Xianguo Huang, 2012. "Foreign Direct Investment, Human Capital and Environmental Pollution in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(2), pages 255-275, February.
    11. Wang, Shu-Hong & Song, Ma-Lin, 2014. "Review of hidden carbon emissions, trade, and labor income share in China, 2001–2011," Energy Policy, Elsevier, vol. 74(C), pages 395-405.
    12. Edward Manderson & Richard Kneller, 2012. "Environmental Regulations, Outward FDI and Heterogeneous Firms: Are Countries Used as Pollution Havens?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(3), pages 317-352, March.
    13. Jiang, Liangliang & Lin, Chen & Lin, Ping, 2014. "The determinants of pollution levels: Firm-level evidence from Chinese manufacturing," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 118-142.
    14. Xiaoyang Li & Yue Maggie Zhou, 2016. "Offshoring Pollution While Offshoring Production," Working Papers 16-09, Center for Economic Studies, U.S. Census Bureau.
    15. Wajdi Bardi & Mohamed Ali Hfaiedh, 2021. "Causal Interaction between FDI, Corruption and Environmental Quality in the MENA Region," Economies, MDPI, vol. 9(1), pages 1-12, February.
    16. Andreas Waldkirch & Munisamy Gopinath, 2004. "Pollution Haven or Hythe? New Evidence from Mexico," International Trade 0412005, University Library of Munich, Germany.
    17. Matthew A. Cole & Robert J.R. Elliott & Jing Zhang, 2011. "Growth, Foreign Direct Investment, And The Environment: Evidence From Chinese Cities," Journal of Regional Science, Wiley Blackwell, vol. 51(1), pages 121-138, February.
    18. Imad Moosa, 2019. "The Environmental Effects of FDI: Evidence from MENA Countries," Working Papers 1321, Economic Research Forum, revised 21 Aug 2019.
    19. Shahbaz, Muhammad & Nasreen, Samia & Abbas, Faisal & Anis, Omri, 2015. "Does foreign direct investment impede environmental quality in high-, middle-, and low-income countries?," Energy Economics, Elsevier, vol. 51(C), pages 275-287.
    20. Sunghoon Chung, 2012. "Environmental Regulation and the Pattern of Outward FDI: An Empirical Assessment of the Pollution Haven Hypothesis," Departmental Working Papers 1203, Southern Methodist University, Department of Economics.

    More about this item

    Keywords

    Hidden carbon emissions; Industrial clusters; Structure optimization;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

    Statistics

    Access and download statistics

    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:kap:compec:v:54:y:2019:i:4:d:10.1007_s10614-016-9570-7. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.