The Analysis of the Effect of Different Environmental Regulations on China's Industrial Competitiveness

CHENG De-ning; WEI Jin-hui

Volume 34 Issue 3

May 2021

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Article Navigation > Journal of Guangdong University of Finance & Economics > 2019 > 34(3): 26-33

CHENG De-ning, WEI Jin-hui. The Analysis of the Effect of Different Environmental Regulations on China's Industrial Competitiveness[J]. Journal of Guangdong University of Finance & Economics, 2019, 34(3): 26-33.

Citation:

CHENG De-ning, WEI Jin-hui. The Analysis of the Effect of Different Environmental Regulations on China's Industrial Competitiveness[J]. Journal of Guangdong University of Finance & Economics, 2019, 34(3): 26-33.

Citation:

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The Analysis of the Effect of Different Environmental Regulations on China's Industrial Competitiveness

Wuhan University, Wuhan 430072, China

Received Date: 2019-01-07
Available Online: 2021-05-27
Publish Date: 2019-05-28

Abstract

Abstract

The impact of environmental regulation on industrial competitiveness depends not only on the strictness of environmental regulations, but also on the type of environmental regulation and its flexibility. China's existing environmental regulations are generally divided into three types: command-based environmental regulation, market-incentive environmental regulation and implicit environmental regulation. Each type of environmental regulation has different flexibility, which has different effects on industrial competitiveness. Based on the classification of environmental regulation types and the construction of index system of regional industrial competitiveness, this paper empirically analyzes the impact of different environmental regulations with different flexibility on regional industrial competitiveness by using the provincial panel data of 30 provinces in China from 2006 to 2015, and the spatial effects of various types of environmental regulation were tested. The study found that command-type environmental regulation has a negative effect on regional industrial competitiveness; the impact of market-incentive environmental regulation on industrial competitiveness is uncertain, and implicit environmental regulation can improve regional industrial competitiveness. It is also found that from the perspective of the spatial effects of different types of environmental regulations, market-incentive environmental regulations have an adverse effect on local industrial competitiveness, and have positive spatial spillover effects on industrial competitiveness in adjacent areas; implicit environmental regulation will enhance local industrial competitiveness, while has a negative spatial spillover effect on industrial competitiveness in adjacent areas. Therefore, when implementing environmental regulation, the government should combine and comprehensively use various types of environmental regulations, and choose implicit environmental regulation with more flexibility as much as possible to effectively enhance China's industrial competitiveness.
- environmental regulation,
- industrial competitiveness,
- spatial spillover effect

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References(20)

References

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