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The heterogeneous impact of environmental regulations on low‐carbon economic transformation in China: Empirical research based on the mediation effect model

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  • Xinli Wang
  • Yuansheng Huang

Abstract

The heterogeneous impacts of environmental regulation on China's low‐carbon economic transformation has attracted much attention. This paper uses the provincial panel data of China as the sample, by constructing a dynamic intermediary effect model, this paper empirically tests the intermediary effect and path difference of different environmental regulation policies on carbon dioxide emission reduction. The study found that whether China's environmental regulatory policies can influence the intensity of carbon emissions through mediation effects is closely related to the type of policy. China's ordered environmental regulation policy can force technological innovation to indirectly curb carbon emissions, but a high carbon industry structure indirectly promotes carbon emissions. Carbon trading pilots have a negative intermediary effect on carbon emissions through industrial structure and technological innovation. The eastern mainly directly suppress carbon emissions through the market incentive policy, the central mainly relies on the command‐controlled environmental policy to achieve backward emission reduction, the western produces a green paradox. The Chinese government must fully consider the heterogeneity of environmental policies constantly improve and optimize the combination of environmental regulation policies. © 2020 Society of Chemical Industry and John Wiley & Sons, Ltd.

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  • Xinli Wang & Yuansheng Huang, 2021. "The heterogeneous impact of environmental regulations on low‐carbon economic transformation in China: Empirical research based on the mediation effect model," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 11(1), pages 81-102, February.
    • Handle: RePEc:wly:greenh:v:11:y:2021:i:1:p:81-102
    DOI: 10.1002/ghg.2033
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    3. Ozturk, Ilhan & Razzaq, Asif & Sharif, Arshian & Yu, Zhengsen, 2023. "Investigating the impact of environmental governance, green innovation, and renewable energy on trade-adjusted material footprint in G20 countries," Resources Policy, Elsevier, vol. 86(PA).
    4. Farooq, Umar & Wen, Jun & Tabash, Mosab I. & Fadoul, Modawi, 2024. "Environmental regulations and capital investment: Does green innovation allow to grow?," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 878-893.
    5. Wen, Jun & Farooq, Umar & Tabash, Mosab I. & El Refae, Ghaleb A. & Ahmed, Jaleel & Subhani, Bilal Haider, 2021. "Government green environmental concerns and corporate real investment decisions: Does financial sector development matter?," Energy Policy, Elsevier, vol. 158(C).
    6. Wan, Qilong & Miao, Xiaodong & Afshan, Sahar, 2022. "Dynamic effects of natural resource abundance, green financing, and government environmental concerns toward the sustainable environment in China," Resources Policy, Elsevier, vol. 79(C).

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