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The Spatial Spillover Effects of Environmental Regulation on China’s Industrial Green Growth Performance

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  • Xiping Wang

    (Department of Economics and Management, North China Electric Power University, No. 619, Yonghua North Street, Baoding 071003, China)

  • Moyang Li

    (Department of Economics and Management, North China Electric Power University, No. 619, Yonghua North Street, Baoding 071003, China)

Abstract

This study investigated the spatial spillover effects of environmental regulation (ER) on industrial green growth performance ( IGGP ) in China. Firstly, a parametric stochastic frontier analysis (SFA) was estimated to measure IGGP using the data of China’s 30 provincial industry sectors during 2000–2014. Then, considering the space–time characteristics in IGGP , the spatial spillover effects of three types of ER, namely, administrative environmental regulation (AER), market-based environmental regulation (MER), and voluntary environmental regulation (VER), on IGGP was examined by employing spatial Durbin model (SDM). The main findings are: (1) the IGGP is low but shows a trend of continuous improvement and there is a significant disparity and spatial autocorrelations amongst regions; (2) the spillover effects of the three types of ER are different, specifically, the spillover effects of AER are significant negative, while the effects of MER and VER are both significant positive. The difference between the latter two is that the positive spillover effect of MER on IGGP is so large to outperform the negative direct effect, while the effect of VER is very minor. Based on these findings, relevant policy suggestions are presented to balance industrial economic and environmental protection in order to promote IGGP .

Suggested Citation

  • Xiping Wang & Moyang Li, 2019. "The Spatial Spillover Effects of Environmental Regulation on China’s Industrial Green Growth Performance," Energies, MDPI, vol. 12(2), pages 1-13, January.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:2:p:267-:d:198165
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    Cited by:

    1. Yanbing Mao & Kui Liu & Jizhi Zhou, 2019. "Evolution of Green Industrial Growth between Europe and China based on the Energy Consumption Model," Sustainability, MDPI, vol. 11(24), pages 1-15, December.
    2. Tinghui Wang & Qi Fu & Yue Wang & Mengfan Gao & Jinhua Chen, 2022. "The Interaction Mechanism of Fiscal Pressure, Local Government Behavioral Preferences and Environmental Governance Efficiency: Evidence from the Yangtze River Delta Region of China," IJERPH, MDPI, vol. 19(24), pages 1-22, December.
    3. Shoujun Lyu & Xingchi Shen & Yujie Bi, 2020. "The Dually Negative Effect of Industrial Polluting Enterprises on China’s Air Pollution: A Provincial Panel Data Analysis Based on Environmental Regulation Theory," IJERPH, MDPI, vol. 17(21), pages 1-16, October.
    4. Pan, Xiongfeng & Xu, Haitao & Li, Mengna & Zong, Tianjiao & Lee, Chew Tin & Lu, Yuduo, 2020. "Environmental expenditure spillovers: Evidence from an estimated multi-area DSGE model," Energy Economics, Elsevier, vol. 86(C).

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