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Balancing Growth and Green: Analyzing the Economic-Environmental Trade-offs Through Chinese Secondary Industry

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  • Yang, Linge

Abstract

This paper investigates the Chinese secondary industry, revealing two significant findings through the integration of neoclassical economic theory and contemporary quasi-experimental methods. Firstly, it reveals that stringent environmental regulations can result in substantial economic losses, underscoring the trade-off between environmental regulation and economic prosperity. Secondly, it identifies an inverted U-shaped relationship between environmental regulation and economic output, indicating the existence of an optimal regulation level where environmental quality and economic growth are balanced. In light of the ongoing emphasis on sustainability, this paper suggests that it is possible to formulate regulatory policies that align economic and environmental goals, especially in developing countries under global economic pressures.

Suggested Citation

  • Yang, Linge, 2024. "Balancing Growth and Green: Analyzing the Economic-Environmental Trade-offs Through Chinese Secondary Industry," MPRA Paper 122048, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:122048
    as

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    File URL: https://mpra.ub.uni-muenchen.de/122048/1/MPRA_paper_122014.pdf
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    References listed on IDEAS

    as
    1. Ebru Alpay & Joe Kerkvliet & Steven Buccola, 2002. "Productivity Growth and Environmental Regulation in Mexican and U.S. Food Manufacturing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 887-901.
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    More about this item

    Keywords

    Environmental Regulation; Sustainability; Command-and-control; Porter’s hypothesis;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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