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Environmental Policy Uncertainty

In: Public-Private Partnership and Policy Uncertainty

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  • Weijie Luo

    (Beijing International Studies University)

Abstract

This study analyzed the impact of environmental regulation, specifically, the “2+26” regional strategy for air quality improvement, on corporate research and development (R&D) investment in China. We developed a theoretical model based on the argument that R&D investment rises with regulation intensity. Using 2010–2019 data from China’s listed companies located in the Beijing-Tianjin-Hebei region and its surrounding areas, we treated the 2+26 policy as a quasi-natural experiment and adopted a difference-in-differences approach to explore its effect on firm R&D input. A positive association was observed between firm R&D intensity and the 2+26 strategy’s implementation in major polluting industries. Our results provide in-depth insights into the 2+26 strategy’s economic consequences, which are potentially of interest to both scholars and policymakers.

Suggested Citation

  • Weijie Luo, 2025. "Environmental Policy Uncertainty," Springer Books, in: Public-Private Partnership and Policy Uncertainty, chapter 0, pages 71-92, Springer.
    • Handle: RePEc:spr:sprchp:978-981-96-8074-0_5
    DOI: 10.1007/978-981-96-8074-0_5
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