IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v30y2023i14p1851-1855.html
   My bibliography  Save this article

Can environmental regulations improve the investment efficiency of heavily polluting firms? A quasi-natural experiment in China

Author

Listed:
  • Caiyun Chen
  • Xiangyan Dai
  • Jiannan Zhou
  • Chenli Fang

Abstract

In light of China’s implementation of the Environmental Protection Tax Law (EPT Law) on 1 January 2018, this paper empirically investigates the influence of environmental regulations on the investment behaviour of heavily polluting firms using a difference-in-differences (DID) model. The EPT Law is found to improve the investment efficiency of heavily polluting firms by restraining overinvestment, an effect that applies mainly to private firms, particularly those with no political affiliations. This paper enriches the existing research on the economic consequences of the EPT Law by integrating environmental regulations, property rights, political affiliation and investment efficiency into a unified framework. This study’s findings are instructive for understanding the economic effects of environmental regulations.

Suggested Citation

  • Caiyun Chen & Xiangyan Dai & Jiannan Zhou & Chenli Fang, 2023. "Can environmental regulations improve the investment efficiency of heavily polluting firms? A quasi-natural experiment in China," Applied Economics Letters, Taylor & Francis Journals, vol. 30(14), pages 1851-1855, August.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:14:p:1851-1855
    DOI: 10.1080/13504851.2022.2083552
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2022.2083552
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2022.2083552?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.

    More about this item

    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:taf:apeclt:v:30:y:2023:i:14:p:1851-1855. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    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.