IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v53y2021i7p830-844.html
   My bibliography  Save this article

Impacts of environmental regulation on firm productivity: evidence from China’s Top 1000 Energy-Consuming Enterprises Program

Author

Listed:
  • Hongshan Ai
  • Yang Hu
  • Ke Li

Abstract

Regulatory environmental policy is crucial for energy conservation and emission reduction. However, no consensus is available on its impact on enterprises’ total factor productivity (TFP). This study took 6631 chemical enterprises as examples to investigate the impacts of the Top 1000 Energy-Consuming Enterprises Program (T1000P) on enterprises’ productivity. The empirical results from the difference-in-differences method indicate that the T1000P hinders TFP improvement. Specifically, the TFP change rate of enterprises affected by the T1000P decreased by 0.9230% annually. Mechanism analysis shows that the impact of T1000P includes increasing business costs, and reducing the profits of regulated companies. By checking the ‘compensation effect’ and ‘crowding out effect’ of the T1000P on enterprises’ technological progress, we prove that the T1000P had negative impacts on technological innovation and reduced the enterprises’ productivity. Therefore, the environmental regulations should be implemented based on industry characteristics and develop differentiated strategies to avoid excessive interference with the enterprises’ production decisions.

Suggested Citation

  • Hongshan Ai & Yang Hu & Ke Li, 2021. "Impacts of environmental regulation on firm productivity: evidence from China’s Top 1000 Energy-Consuming Enterprises Program," Applied Economics, Taylor & Francis Journals, vol. 53(7), pages 830-844, February.
    • Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:830-844
    DOI: 10.1080/00036846.2020.1815642
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2020.1815642
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2020.1815642?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.

    Citations

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


    Cited by:

    1. Zhong Wang & Mingyu Wu & Shixiang Li & Changji Wang, 2021. "The Effect Evaluation of China’s Energy-Consuming Right Trading Policy: Empirical Analysis Based on PSM-DID," Sustainability, MDPI, vol. 13(21), pages 1-16, October.
    2. Xie, Tingting & Yuan, Ye, 2023. "Go with the wind: Spatial impacts of environmental regulations on economic activities in China," Journal of Development Economics, Elsevier, vol. 164(C).
    3. Du, Minzhe & Liu, Yunxiao & Wang, Bing & Lee, Myunghun & Zhang, Ning, 2021. "The sources of regulated productivity in Chinese power plants: An estimation of the restricted cost function combined with DEA approach," Energy Economics, Elsevier, vol. 100(C).
    4. Wen, Huwei & Wen, Changyong & Lee, Chien-Chiang, 2022. "Impact of digitalization and environmental regulation on total factor productivity," Information Economics and Policy, Elsevier, vol. 61(C).

    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:applec:v:53:y:2021:i:7:p:830-844. 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/RAEC20 .

    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.