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Environmental compliance and human capital: Evidence from Chinese industrial firms

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  • Lan, Jing
  • Munro, Alistair

Abstract

By using a unique cross-sectional dataset of Chinese industrial firms, this paper investigates the external and internal effects of human capital on firms’ environmental performance. The result shows that firms have better environmental compliance because they are ‘pushed’ into compliance by the internal driver of human capital and ‘pulled’ to be environmental friendly by the external force of social human capital stock. This finding is robust when we take into account the possible endogeneity of human capital. In addition, evidence from this study suggests that the current situation of weak implementation of environmental supervision and evasion of environmental monitoring could be improved by promotion of internal and external human capital.

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  • Lan, Jing & Munro, Alistair, 2013. "Environmental compliance and human capital: Evidence from Chinese industrial firms," Resource and Energy Economics, Elsevier, vol. 35(4), pages 534-557.
    • Handle: RePEc:eee:resene:v:35:y:2013:i:4:p:534-557
    DOI: 10.1016/j.reseneeco.2013.05.003
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    19. Woo-Yong Song & Bongsuk Sung, 2014. "Environmental regulations and the export performance of South Korean manufacturing industries: A dynamic panel approach," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(7), pages 923-945, October.
    20. Kin Sibanda & Dorcas Gonese & Rufaro Garidzirai, 2023. "Human Capital and Environmental Sustainability Nexus in Selected SADC Countries," Resources, MDPI, vol. 12(4), pages 1-16, April.
    21. Zhang, Jinning & Wang, Jianlong & Yang, Xiaodong & Ren, Siyu & Ran, Qiying & Hao, Yu, 2021. "Does local government competition aggravate haze pollution? A new perspective of factor market distortion," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
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    23. AM Priyangani Adikari & Haiyun Liu & DMSLB Dissanayake & Manjula Ranagalage, 2023. "Human Capital and Carbon Emissions: The Way forward Reducing Environmental Degradation," Sustainability, MDPI, vol. 15(4), pages 1-17, February.
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    More about this item

    Keywords

    Environmental compliance; Human capital; External and internal effects; Endogeneity;
    All these keywords.

    JEL classification:

    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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