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Improvement of Different Types of Environmental Regulations on Total Factor Productivity: A Threshold Effect Analysis

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  • Xubin Lei
  • Shusheng Wu

Abstract

Based on the distinction of different types of environmental regulations, this paper attempts to test the threshold effect of environmental regulation on the total factor productivity (TFP) by employing a panel threshold model and a province-level panel data set during 2006–2016. Research results show that the influence of command-and-control and market incentive environmental regulation on the total factor productivity has a single threshold conversion characteristic of foreign direct investment (FDI) and financial scale, but the impact behavior and influence degree around the threshold are inconsistent. The effect of voluntary conscious environmental regulation on the total factor productivity has a single threshold conversion feature of human capital, and moderately enhanced intensity of environmental regulation is conducive to promoting the total factor productivity after crossing the threshold. Finally, in order to enhance the regional total factor productivity, relevant policy recommendations are proposed.

Suggested Citation

  • Xubin Lei & Shusheng Wu, 2019. "Improvement of Different Types of Environmental Regulations on Total Factor Productivity: A Threshold Effect Analysis," Discrete Dynamics in Nature and Society, Hindawi, vol. 2019, pages 1-12, December.
    • Handle: RePEc:hin:jnddns:9790545
    DOI: 10.1155/2019/9790545
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    Cited by:

    1. Jingjing Wang & Yuhan Pan & Decai Tang, 2024. "Environmental Protection Tax Reform in China: A Catalyst or a Barrier to Total Factor Productivity? An Analysis through a Quasi-Natural Experiment," Sustainability, MDPI, vol. 16(16), pages 1-20, August.
    2. Weijiang Liu & Mingze Du & Yuxin Bai, 2021. "Mechanisms of Environmental Regulation’s Impact on Green Technological Progress—Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 13(4), pages 1-23, February.
    3. Decheng Fan & Kairan Liu, 2021. "The Relationship between Artificial Intelligence and China’s Sustainable Economic Growth: Focused on the Mediating Effects of Industrial Structural Change," Sustainability, MDPI, vol. 13(20), pages 1-15, October.
    4. Lei Shen & Xi Zhang & Hongda Liu & Pinbo Yao, 2021. "Research on the Economic Development Threshold Effect of the Employment Density of the Shanghai Consumer Goods Industry in the Context of New Manufacturing, Based on the Experience Comparison with Int," Mathematics, MDPI, vol. 9(9), pages 1-19, April.

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