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Nonlinear Effects of Environmental Regulation on Environmental Pollution

Author

Listed:
  • Yuncai Liu
  • Nengsheng Luo
  • Shusheng Wu

Abstract

This paper classifies environmental regulation into two types and constructs a theoretical framework to explore the influences of fee-based environmental regulation and invest-based environmental regulation on environmental pollution. It then establishes some dynamic spatial autoregressive nonlinear econometric models to test the theoretical hypothesis based on 30-area panel data from 2004 to 2016. The results illustrate that inverted “U” shape curve relationship exists between fee-based environmental regulation and environmental pollution, while a “U” shape curve relationship between invest-based environmental regulation and environmental pollution exists. In addition, the findings suggest that improving the proportion of secondary industry can directly promote the environmental quality while effectively control of foreign direct investment and fiscal decentralization is also indispensable. Thus, the government should make targeted research about the optimal intensity of fee-based environmental regulation and invest-based environmental regulation and make targeted enterprise policy for the environmental pollution reduce, which contains promoting the energy revolution and strengthening the depth and strength of opening-up step by step.

Suggested Citation

  • Yuncai Liu & Nengsheng Luo & Shusheng Wu, 2019. "Nonlinear Effects of Environmental Regulation on Environmental Pollution," Discrete Dynamics in Nature and Society, Hindawi, vol. 2019, pages 1-10, March.
    • Handle: RePEc:hin:jnddns:6065396
    DOI: 10.1155/2019/6065396
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    Cited by:

    1. Shanshan Liu & Feng Deng & Baosheng Yuan, 2023. "How Does Public Capital Affect Enterprise Technological Innovation Based on Empirical Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    2. Xiaoli Shi & Ying Chen & Qianju Cheng, 2022. "Environmental Regulation, Environmental Knowledge Spillover, and Regional Economic Growth in China: An Empirical Test Based on the Spatial Durbin Model," Sustainability, MDPI, vol. 14(21), pages 1-23, November.
    3. Du, Qunyang & Li, Zhongyuan & Du, Min & Yang, Tianle, 2024. "Government venture capital and innovation performance in alternative energy production: The moderating role of environmental regulation and capital market activity," Energy Economics, Elsevier, vol. 129(C).
    4. Xiao Han & Yining Chen & Hehua Zhao, 2023. "Temporal–Spatial Evolution, Influencing Factors, and Driving Mechanisms of Environmental Regulation Performance Disparities: Evidence from China," Sustainability, MDPI, vol. 15(15), pages 1-26, July.
    5. Yutian Dou & Shuai Guan, 2023. "The Regionally Heterogeneous Impact of China’s Environmental Regulation on the Transformation and Upgrading of Its Industrial Structure," Sustainability, MDPI, vol. 15(24), pages 1-19, December.

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