IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i24p16622-d1000804.html
   My bibliography  Save this article

The Effect of Environmental Regulation on Marine Economic Transformation under the Decentralized System: Evidence from Coastal Provinces in China

Author

Listed:
  • Haoran Ge

    (Business School, Zhejiang Wanli University, Ningbo 315100, China)

  • Changbiao Zhong

    (Business School, Ningbo University, Ningbo 315100, China)

  • Hanwen Zhang

    (Business School, Ningbo City College of Vocational Technology, Ningbo 315100, China)

  • Dameng Hu

    (Business School, Ningbo University, Ningbo 315100, China)

Abstract

The transformation of the marine economy is a central issue in China’s economic sustainability. On the conflicting goals between sustaining a strong marine economy and protecting the environment, this study explored the direct and spillover effects of two types of regional environmental regulation on the marine economic transformation of China’s coastal provinces (excluding Hong Kong, Macao and Taiwan) under a decentralized system. By establishing a theoretical framework, using panel data of coastal provinces (cities) in China from 2010 to 2019, and using methods of spatial correlation test and spatial measurement model involved moderator, the results show: (1) The gaps in marine economic transformation were gradually narrowed among these regions, but a significantly negative spatial autocorrelation remained. (2) Incentive-type environmental regulation had a direct effect on marine economic transformation but had a negative effect on the adjacent areas, and the decentralization system could play a positive moderator effect. (3) The investment-type environmental regulation and local marine economic transformation showed a significant “U-shape” relationship, and such regulation had a positive effect on adjacent areas. Decentralization could aggravate the negative effect on the local level but had not yet significantly changed the spillover effect. (4) Presented suggestions for formulating policy, industrial transfer compensation, and regulation decentralization. Hopefully, the findings of this study can shed light on how to improve the efficiency of environmental regulation and realize the sustainable goals of the marine economy.

Suggested Citation

  • Haoran Ge & Changbiao Zhong & Hanwen Zhang & Dameng Hu, 2022. "The Effect of Environmental Regulation on Marine Economic Transformation under the Decentralized System: Evidence from Coastal Provinces in China," Sustainability, MDPI, vol. 14(24), pages 1-24, December.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16622-:d:1000804
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/24/16622/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/14/24/16622/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bazant-Fabre, Ondrej & Bonilla-Moheno, Martha & Martínez, M. Luisa & Lithgow, Debora & Muñoz-Piña, Carlos, 2022. "Land planning and protected areas in the coastal zone of Mexico: Do spatial policies promote fragmented governance?," Land Use Policy, Elsevier, vol. 121(C).
    2. Jalil, Abdul & Feridun, Mete, 2011. "The impact of growth, energy and financial development on the environment in China: A cointegration analysis," Energy Economics, Elsevier, vol. 33(2), pages 284-291, March.
    3. Hui Zheng & Xiaodong Liu & Yajun Xu & Hairong Mu, 2021. "Economic Spillover Effects of Industrial Structure Upgrading in China’s Coastal Economic Rims," Sustainability, MDPI, vol. 13(7), pages 1-14, March.
    4. G Gong & J Gao & Xue-Zhong He, 2008. "Exchange Rate Regime and Monetary Policy: A Proposal for Small and Less Developed Economies," Published Paper Series 2008-3, Finance Discipline Group, UTS Business School, University of Technology, Sydney.
    5. Wenqiang Qian & Xiangyu Cheng & Guoying Lu & Lijun Zhu & Fei Li, 2019. "Fiscal Decentralization, Local Competitions and Sustainability of Medical Insurance Funds: Evidence from China," Sustainability, MDPI, vol. 11(8), pages 1-21, April.
    6. Jacobsen, Grant D. & Kotchen, Matthew J. & Vandenbergh, Michael P., 2012. "The behavioral response to voluntary provision of an environmental public good: Evidence from residential electricity demand," European Economic Review, Elsevier, vol. 56(5), pages 946-960.
    7. Wallace E. Oates & Wallace E. Oates, 2004. "An Essay on Fiscal Federalism," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 22, pages 384-414, Edward Elgar Publishing.
    8. Hilary Sigman, 2014. "Decentralization and Environmental Quality: An International Analysis of Water Pollution Levels and Variation," Land Economics, University of Wisconsin Press, vol. 90(1), pages 114-130.
    9. Shadbegian, Ronald J. & Gray, Wayne B., 2005. "Pollution abatement expenditures and plant-level productivity: A production function approach," Ecological Economics, Elsevier, vol. 54(2-3), pages 196-208, August.
    10. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
    11. Kunce, Mitch & Shogren, Jason F., 2005. "On interjurisdictional competition and environmental federalism," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 212-224, July.
    12. Gray, Wayne B, 1987. "The Cost of Regulation: OSHA, EPA and the Productivity Slowdown," American Economic Review, American Economic Association, vol. 77(5), pages 998-1006, December.
    13. Judith M. Dean & Mary E. Lovely & Hua Wang, 2017. "Are foreign investors attracted to weak environmental regulations? Evaluating the evidence from China," World Scientific Book Chapters, in: Mary E Lovely (ed.), International Economic Integration and Domestic Performance, chapter 9, pages 155-167, World Scientific Publishing Co. Pte. Ltd..
    14. Akai, Nobuo & Sakata, Masayo, 2002. "Fiscal decentralization contributes to economic growth: evidence from state-level cross-section data for the United States," Journal of Urban Economics, Elsevier, vol. 52(1), pages 93-108, July.
    15. Huihui Deng & Xinye Zheng & Nan Huang & Fanghua Li, 2012. "Strategic Interaction in Spending on Environmental Protection: Spatial Evidence from Chinese Cities," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 20(5), pages 103-120, September.
    16. Ioana Andreea Bogoslov & Anca Elena Lungu & Eduard Alexandru Stoica & Mircea Radu Georgescu, 2022. "European Green Deal Impact on Entrepreneurship and Competition: A Free Market Approach," Sustainability, MDPI, vol. 14(19), pages 1-15, September.
    17. Xin, Fangkun & Qian, Yilei, 2022. "Does fiscal decentralization promote green utilization of land resources? Evidence from Chinese local governments," Resources Policy, Elsevier, vol. 79(C).
    18. Weiteng Shen & Qiuguang Hu & Xuan Yu & Bernadette Tadala Imwa, 2020. "Does Coastal Local Government Competition Increase Coastal Water Pollution? Evidence from China," IJERPH, MDPI, vol. 17(18), pages 1-18, September.
    19. Fredriksson, Per G. & Millimet, Daniel L., 2002. "Strategic Interaction and the Determination of Environmental Policy across U.S. States," Journal of Urban Economics, Elsevier, vol. 51(1), pages 101-122, January.
    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. Jennifer Elston & Hugo Pinto & Carla Nogueira, 2024. "Tides of Change for a Sustainable Blue Economy: A Systematic Literature Review of Innovation in Maritime Activities," Sustainability, MDPI, vol. 16(24), pages 1-27, December.
    2. Xiaowei Ni & Yongbo Quan, 2023. "Measuring the Sustainable Development of Marine Economy Based on the Entropy Value Method: A Case Study in the Yangtze River Delta, China," Sustainability, MDPI, vol. 15(8), pages 1-16, April.

    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. 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).
    2. Johan Brolund & Robert Lundmark, 2017. "Effect of Environmental Regulation Stringency on the Pulp and Paper Industry," Sustainability, MDPI, vol. 9(12), pages 1-16, December.
    3. Oberndorfer, Ulrich & Moslener, Ulf & Böhringer, Christoph & Ziegler, Andreas, 2008. "Clean and Productive? Evidence from the German Manufacturing Industry," ZEW Discussion Papers 08-091, ZEW - Leibniz Centre for European Economic Research.
    4. Fredriksson, Per G. & Wollscheid, Jim R., 2014. "Environmental decentralization and political centralization," Ecological Economics, Elsevier, vol. 107(C), pages 402-410.
    5. Böhringer, Christoph & Moslener, Ulf & Oberndorfer, Ulrich & Ziegler, Andreas, 2012. "Clean and productive? Empirical evidence from the German manufacturing industry," Research Policy, Elsevier, vol. 41(2), pages 442-451.
    6. Jean Pierre Huiban & Antonio Musolesi, 2012. "Augmenting the production function with knowledge capital to test the Porter hypothesis: the case of French food industries," Working Papers hal-02804599, HAL.
    7. Amy McMillan & Timothy C. Dunne & Joshua R. Aaron & Brandon N. Cline, 2017. "Environmental Management’s Impact on Market Value: Rewards and Punishments," Corporate Reputation Review, Palgrave Macmillan, vol. 20(1), pages 105-122, February.
    8. Nikos Chatzistamoulou & George Diagourtas & Kostas Kounetas, 2017. "Do pollution abatement expenditures lead to higher productivity growth? Evidence from Greek manufacturing industries," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(1), pages 15-34, January.
    9. Jean Pierre Huiban & Camille Mastromarco & Antonio Musolesi & Michel Simioni, 2016. "The impact of pollution abatement investments on production technology: new insights from frontier analysis," Working Papers hal-01512154, HAL.
    10. Roberto Antonietti & Alberto Marzucchi, 2013. "Green Investment Strategies and Export Performance: A Firm-level Investigation," Working Papers 2013.76, Fondazione Eni Enrico Mattei.
    11. Becker, Randy A., 2011. "Local environmental regulation and plant-level productivity," Ecological Economics, Elsevier, vol. 70(12), pages 2516-2522.
    12. Yi Shi & Yan Li, 2022. "An Evolutionary Game Analysis on Green Technological Innovation of New Energy Enterprises under the Heterogeneous Environmental Regulation Perspective," Sustainability, MDPI, vol. 14(10), pages 1-26, May.
    13. Chiara Franco & Giovanni Marin, 2013. "The Effect of Within-Sector, Upstream and Downstream Energy Taxes on Innovation and Productivity," SEEDS Working Papers 0214, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jan 2014.
    14. Becker, Randy A., 2011. "Local environmental regulation and plant-level productivity," Ecological Economics, Elsevier, vol. 70(12), pages 2516-2522.
    15. Xu, Le & Yang, Lili & Li, Ding & Shao, Shuai, 2023. "Asymmetric effects of heterogeneous environmental standards on green technology innovation: Evidence from China," Energy Economics, Elsevier, vol. 117(C).
    16. Siedschlag, Iulia & Yan, Weijie, 2023. "Do green investments improve firm performance? Empirical evidence from Ireland," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    17. Randy A. Becker & Ronald J. Shadbegian, 2004. "A Change of PACE: Comparing the 1994 and 1999 Pollution Abatement Costs and Expenditures Surveys," NCEE Working Paper Series 200408, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jul 2004.
    18. Quoc Tran-Nam & Phu Nguyen-Van & Tuyen Tiet, 2025. "Synergy in environmental compliance, innovation and export on SMEs’ growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 34(1), pages 138-162, January.
    19. Xuanai Huang & Yaozhong Wang & Ying Chen & Zunguo Hu, 2024. "Green Technology Innovation and Enterprise Performance: An Analysis Based on Causal Machine Learning Models," Sustainability, MDPI, vol. 16(6), pages 1-16, March.
    20. Yu Qi & Jinliang Yu, 2023. "Decentralization and local pollution activities: New quasi evidence from China," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(1), pages 115-159, January.

    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:jsusta:v:14:y:2022:i:24:p:16622-:d:1000804. 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.