IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v18y2021i15p8216-d607495.html
   My bibliography  Save this article

Does Environmental Policy Affect Green Total Factor Productivity? Quasi-Natural Experiment Based on China’s Air Pollution Control and Prevention Action Plan

Author

Listed:
  • Tinghui Li

    (School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China)

  • Jiehua Ma

    (School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China)

  • Bin Mo

    (Institute of Finance, Guangzhou University, Guangzhou 510006, China)

Abstract

It is the scientific way to promote the transformation and optimization of an industrial structure to promote the improvement of its green total factor productivity ( GTFP ) by formulating environmental regulation policies. Based on the GTFP panel data of 30 provinces in China from 2004 to 2017, this paper takes the “Air Pollution Control and Prevention Action Plan” (APCP Action Plan) as the proxy dummy variable of environmental regulation, and uses the difference-in-differences (DID) model to explore the impact of the implementation of the APCP Action Plan on GTFP . In addition, by constructing the industrial structure optimization index, this paper analyzes how the APCP Action Plan policy affects GTFP through the transformation and optimization of industrial structure. The following basic conclusions are obtained: First, environmental regulation policies like the APCP Action Plan can improve GTFP . Second, the APCP Action Plan has regional heterogeneity in promoting GTFP in different regions. The policy only significantly affects the GTFP in the Pearl River Delta region in southern China. Third, the “quantity” and “quality” of the optimization of industrial structure will weaken the promoting effect of the APCP Action Plan on GTFP . In contrast, the rationalization of industrial structure will aggravate this promoting effect.

Suggested Citation

  • Tinghui Li & Jiehua Ma & Bin Mo, 2021. "Does Environmental Policy Affect Green Total Factor Productivity? Quasi-Natural Experiment Based on China’s Air Pollution Control and Prevention Action Plan," IJERPH, MDPI, vol. 18(15), pages 1-23, August.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:15:p:8216-:d:607495
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/18/15/8216/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/18/15/8216/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Liu, Zuankuo & Xin, Li, 2019. "Has China's Belt and Road Initiative promoted its green total factor productivity？——Evidence from primary provinces along the route," Energy Policy, Elsevier, vol. 129(C), pages 360-369.
    2. Wang, Yan & Shen, Neng, 2016. "Environmental regulation and environmental productivity: The case of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 758-766.
    3. Fen Li & Cunyi Yang & Zhenghui Li & Pierre Failler, 2021. "Does Geopolitics Have an Impact on Energy Trade? Empirical Research on Emerging Countries," Sustainability, MDPI, vol. 13(9), pages 1-24, May.
    4. Petra Moser & Alessandra Voena, 2012. "Compulsory Licensing: Evidence from the Trading with the Enemy Act," American Economic Review, American Economic Association, vol. 102(1), pages 396-427, February.
    5. R. De Santis & P. Esposito & C. Jona Lasinio, 2021. "Environmental regulation and productivity growth: Main policy challenges," International Economics, CEPII research center, issue 165, pages 264-277.
    6. Zhenghui Li & Gaoke Liao & Khaldoon Albitar, 2020. "Does corporate environmental responsibility engagement affect firm value? The mediating role of corporate innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1045-1055, March.
    7. Hancevic, Pedro Ignacio, 2016. "Environmental regulation and productivity: The case of electricity generation under the CAAA-1990," Energy Economics, Elsevier, vol. 60(C), pages 131-143.
    8. Hille, Erik & Althammer, Wilhelm & Diederich, Henning, 2020. "Environmental regulation and innovation in renewable energy technologies: Does the policy instrument matter?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    9. Zhenghui Li & Fanqi Zou & Yong Tan & Jinhui Zhu, 2021. "Does Financial Excess Support Land Urbanization—An Empirical Study of Cities in China," Land, MDPI, vol. 10(6), pages 1-17, June.
    10. Wang, Yun & Sun, Xiaohua & Guo, Xu, 2019. "Environmental regulation and green productivity growth: Empirical evidence on the Porter Hypothesis from OECD industrial sectors," Energy Policy, Elsevier, vol. 132(C), pages 611-619.
    11. Aldieri, Luigi & Makkonen, Teemu & Paolo Vinci, Concetto, 2020. "Environmental knowledge spillovers and productivity: A patent analysis for large international firms in the energy, water and land resources fields," Resources Policy, Elsevier, vol. 69(C).
    12. Zejun Li & Zimei Huang & Tinghui Li, 2020. "Does Economic Growth Driving Force Convert? Evidence from China," Mathematical Problems in Engineering, Hindawi, vol. 2020, pages 1-11, October.
    13. Zhenghui Li & Zhehao Huang & Hao Dong, 2019. "The Influential Factors on Outward Foreign Direct Investment: Evidence from the “The Belt and Road”," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(14), pages 3211-3226, November.
    14. Wu, Haitao & Hao, Yu & Ren, Siyu, 2020. "How do environmental regulation and environmental decentralization affect green total factor energy efficiency: Evidence from China," Energy Economics, Elsevier, vol. 91(C).
    15. Yang, Zhenbing & Fan, Meiting & Shao, Shuai & Yang, Lili, 2017. "Does carbon intensity constraint policy improve industrial green production performance in China? A quasi-DID analysis," Energy Economics, Elsevier, vol. 68(C), pages 271-282.
    16. Cunyi Yang & Tinghui Li & Khaldoon Albitar, 2021. "Does energy efficiency affect ambient PM2.5? The moderating role of energy investment," Papers 2105.11080, arXiv.org.
    17. Joana Costa, 2021. "Carrots or Sticks: Which Policies Matter the Most in Sustainable Resource Management?," Resources, MDPI, vol. 10(2), pages 1-21, February.
    18. Martínez-Zarzoso, Inmaculada & Bengochea-Morancho, Aurelia & Morales-Lage, Rafael, 2019. "Does environmental policy stringency foster innovation and productivity in OECD countries?," Energy Policy, Elsevier, vol. 134(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mingzhe Sun & Lingdi Zhao, 2024. "Impact of Environmental Regulatory Types and Green Technological Innovation on Green Total Factor Productivity in Polluted Areas of China," Sustainability, MDPI, vol. 16(9), pages 1-17, May.
    2. Shuai Shao & Hongwu Qiao, 2024. "The Impact of Environmental Courts on Green Total Factor Productivity in Chinese Cities," Sustainability, MDPI, vol. 16(16), pages 1-21, August.
    3. Zhou, Di & Yin, Xiaoshuo & Xie, Dongchun, 2023. "Local governments’ environmental targets and green total factor productivity in Chinese cities," Economic Modelling, Elsevier, vol. 120(C).
    4. Haotian Zhang & Xiumei Sun & Xueyang Wang & Su Yan, 2022. "Winning the Blue Sky Defense War: Assessing Air Pollution Prevention and Control Action Based on Synthetic Control Method," IJERPH, MDPI, vol. 19(16), pages 1-18, August.
    5. Wang, Hong & Hu, Xuechen & Li, Hailing, 2023. "Regional production restriction policy and firms’ green transition: Evidence from Beijing-Tianjin-Hebei region," Energy, Elsevier, vol. 282(C).
    6. Mengli Liu & Yan Zhu & Jingjing Zhang, 2024. "Can Environmental Regulation Enhance Green Total Factor Productivity?—Evidence from 107 Cities in the Yangtze River Economic Belt," Sustainability, MDPI, vol. 16(12), pages 1-19, June.
    7. Jing Sun & Ningning Zhai & Jichao Miao & Huaping Sun, 2022. "Can Green Finance Effectively Promote the Carbon Emission Reduction in “Local-Neighborhood” Areas?—Empirical Evidence from China," Agriculture, MDPI, vol. 12(10), pages 1-13, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Bingbing & Yu, Lan & Sun, Chuanwang, 2022. "How does urban environmental legislation guide the green transition of enterprises? Based on the perspective of enterprises' green total factor productivity," Energy Economics, Elsevier, vol. 110(C).
    2. Shuai Wang & Cunyi Yang & Zhenghui Li, 2022. "Green Total Factor Productivity Growth: Policy-Guided or Market-Driven?," IJERPH, MDPI, vol. 19(17), pages 1-19, August.
    3. Shuping Cheng & Lingjie Meng & Weizhong Wang, 2022. "The Impact of Environmental Regulation on Green Energy Technology Innovation—Evidence from China," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    4. Yuxin Fang & Hongjun Cao, 2022. "Environmental Decentralization, Heterogeneous Environmental Regulation, and Green Total Factor Productivity—Evidence from China," Sustainability, MDPI, vol. 14(18), pages 1-20, September.
    5. Zhuanlan Sun & Demi Zhu, 2023. "Investigating environmental regulation effects on technological innovation: A meta-regression analysis," Energy & Environment, , vol. 34(3), pages 463-492, May.
    6. Lei Jiang & Yuan Chen & Bo Zhang, 2023. "Revisiting the Impact of Environmental Regulation on Green Total Factor Productivity in China: Based on a Comprehensive Index of Environmental Regulation from a Spatiotemporal Heterogeneity Perspectiv," IJERPH, MDPI, vol. 20(2), pages 1-17, January.
    7. Yu Hao & Yunxia Guo & Haitao Wu, 2022. "The role of information and communication technology on green total factor energy efficiency: Does environmental regulation work?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 403-424, January.
    8. Li, Bo & Han, Yukai & Wang, Chensheng & Sun, Wei, 2022. "Did civilized city policy improve energy efficiency of resource-based cities? Prefecture-level evidence from China," Energy Policy, Elsevier, vol. 167(C).
    9. Yi Li & Lili Ding & Yongliang Yang, 2020. "Can the Introduction of an Environmental Target Assessment Policy Improve the TFP of Textile Enterprises? A Quasi-Natural Experiment Based on the Huai River Basin in China," Sustainability, MDPI, vol. 12(4), pages 1-19, February.
    10. Liu, Xiaoguang & Ji, Qiang & Yu, Jian, 2021. "Sustainable development goals and firm carbon emissions: Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 103(C).
    11. Yue Liu & Pierre Failler & Liming Chen, 2021. "Can Mandatory Disclosure Policies Promote Corporate Environmental Responsibility?—Quasi-Natural Experimental Research on China," IJERPH, MDPI, vol. 18(11), pages 1-19, June.
    12. Xianpu Xu & Xiawan Li & Lin Zheng, 2022. "A Blessing or a Curse? Exploring the Impact of Environmental Regulation on China’s Regional Green Development from the Perspective of Governance Transformation," IJERPH, MDPI, vol. 19(3), pages 1-24, January.
    13. Xi Zhang & Rui Li & Jinglei Zhang, 2022. "Understanding the Green Total Factor Productivity of Manufacturing Industry in China: Analysis Based on the Super-SBM Model with Undesirable Outputs," Sustainability, MDPI, vol. 14(15), pages 1-16, July.
    14. Sa Xu & Cunyi Yang & Zhehao Huang & Pierre Failler, 2022. "Interaction between Digital Economy and Environmental Pollution: New Evidence from a Spatial Perspective," IJERPH, MDPI, vol. 19(9), pages 1-23, April.
    15. Hanxiao Wei & Huiqin Yao, 2022. "Environmental Regulation, Roundabout Production, and Industrial Structure Transformation and Upgrading: Evidence from China," Sustainability, MDPI, vol. 14(7), pages 1-17, March.
    16. Yan, Zheming & Zou, Baoling & Du, Kerui & Li, Ke, 2020. "Do renewable energy technology innovations promote China's green productivity growth? Fresh evidence from partially linear functional-coefficient models," Energy Economics, Elsevier, vol. 90(C).
    17. Huang, Hongyun & Mo, Renbian & Chen, Xingquan, 2021. "New patterns in China's regional green development: An interval Malmquist–Luenberger productivity analysis," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 161-173.
    18. Zhang, Yixiang & Xiong, Yali & Li, Feng & Cheng, Jinhua & Yue, Xiaochen, 2020. "Environmental regulation, capital output and energy efficiency in China: An empirical research based on integrated energy prices," Energy Policy, Elsevier, vol. 146(C).
    19. Zhang, Dan & Zheng, Mingbo & Feng, Gen-Fu & Chang, Chun-Ping, 2022. "Does an environmental policy bring to green innovation in renewable energy?," Renewable Energy, Elsevier, vol. 195(C), pages 1113-1124.
    20. Kaiming Zhong & Hongyan Fu & Tinghui Li, 2022. "Can the Digital Economy Facilitate Carbon Emissions Decoupling? An Empirical Study Based on Provincial Data in China," IJERPH, MDPI, vol. 19(11), pages 1-25, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:18:y:2021:i:15:p:8216-:d:607495. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.