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Economics of wastewater management in China's industry

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  • An, Yao
  • Zhang, Lin
  • Adom, Philip Kofi

Abstract

This article provides an economic investigation into the underlying causes of industrial wastewater emissions. We examine the direct and the structural break-induced effect of national environmental regulation on industrial wastewater emissions. The results show that strict environmental regulation can partially offset the energy-induced effects imposed by the scale effects of foreign direct inflows and cause positive behavioral responses by either limiting coal usage or improving upon coal usage technology and shift towards clean energy sources. We find the absence of scale economies in the provision of environmental services in the industrial sector due to the poor nature of the technical processes of industries. We further highlight the importance of raising the investment in environmental treatment and embracing trade liberalization in the improvement of industrial wastewater management.

Suggested Citation

  • An, Yao & Zhang, Lin & Adom, Philip Kofi, 2019. "Economics of wastewater management in China's industry," Environment and Development Economics, Cambridge University Press, vol. 24(5), pages 457-478, October.
    • Handle: RePEc:cup:endeec:v:24:y:2019:i:05:p:457-478_00
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    Cited by:

    1. Steffen Nauhaus & Johannes Luger & Sebastian Raisch, 2021. "Strategic Decision Making in the Digital Age: Expert Sentiment and Corporate Capital Allocation," Journal of Management Studies, Wiley Blackwell, vol. 58(7), pages 1933-1961, November.
    2. Yongqi Zhang & Xi Chen, 2024. "Citizenship of the agricultural transfer population and property income‐‐empirical evidence from the Chinese region," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    3. Zhang, Eagle, 2024. "Accounting and statecraft in China: Accrual accounting for effective government rather than efficient market," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 98(C).
    4. Herbert Dawid & Mariya Mitkova & Anna Zaharieva, 2023. "Optimal promotions of competing firms in a frictional labour market with organizational hierarchies," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 32(1), pages 100-131, January.
    5. Wang, Chen & Chu, Zhongzhu & Gu, Wei, 2021. "Assessing the role of public attention in China's wastewater treatment: A spatial perspective," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    6. Ben Jebli, Mehdi & Farhani, Sahbi & Guesmi, Khaled, 2020. "Renewable energy, CO2 emissions and value added: Empirical evidence from countries with different income levels," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 402-410.
    7. Nadeem Akhtar & Hidayat Ullah Khan & Muhammad Asif Jan & Cornelius B. Pratt & Ma Jianfu, 2021. "Exploring the Determinants of the China-Pakistan Economic Corridor and Its Impact on Local Communities," SAGE Open, , vol. 11(4), pages 21582440211, December.

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