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Article
Publication date: 18 October 2018

Jiangtao Li, Jianyue Ji and Yi Zhang

There is no conclusive whether environmental regulation is a constraint or an incentive to the production development. The purpose of this paper is to analyze the non-linear…

Abstract

Purpose

There is no conclusive whether environmental regulation is a constraint or an incentive to the production development. The purpose of this paper is to analyze the non-linear effects of environmental regulations on economic outcomes from the combined perspective of labor productivity and environmental regulation costs.

Design/methodology/approach

Under the assumption of maximizing the utility of residents and maximizing the profit of firms, this research introduces a mathematical model that incorporates the promotion effect of environmental regulations on labor productivity and the costs of environmental regulations. On this basis, the authors analyze the non-linear relationship between environmental regulations and economic outcomes theoretically. This paper also conducts an empirical test using the panel data of 28 provinces in China from 1998 to 2015 through threshold regression.

Findings

Theoretical analysis shows that environmental regulations impose both the environmental regulation cost effect and the compensation effect on the labor productivity enhancement. The ultimate impact of environmental regulation on economic outcomes depends on the comparison of these two effects. Under the different intensities of environmental regulation, the magnitude of these two effects may not be equal. The empirical results further confirm the nonlinear relationship between environmental regulations and economic outcomes.

Originality/value

Previous studies have neglected the role of environmental regulations in improving labor productivity. This work’s main contribution is to propose a novel framework to study the non-linear relationship between environmental regulation and the growth of economic outcomes from perspective of labor productivity and the costs of environmental regulations.

Details

Management of Environmental Quality: An International Journal, vol. 30 no. 2
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 19 October 2023

Lin Fu, Rui Long, Xiaohua Sun and Yun Wang

The purpose of this study is to analyze the effect of foreign direct investment (FDI) on pollution emissions and how environmental regulation affects this relationship.

Abstract

Purpose

The purpose of this study is to analyze the effect of foreign direct investment (FDI) on pollution emissions and how environmental regulation affects this relationship.

Design/methodology/approach

In the empirical research, the authors selected panel data for 30 provinces in China from 2005 to 2019 as samples. First, the authors used the instrumental variable method to verify the existence of the above hypotheses in China. Then, the authors analyzed the moderating effect of different types of environmental regulations on the environmental effects of FDI. Next, in further discussion, the authors analyzed the difference between the environmental effect and the moderating effect in different time periods and regions, respectively. Finally, the authors discussed whether the different intensities of environmental regulations lead to the transfer effect of FDI in choosing investment destinations.

Findings

The result shows that FDI can help reduce pollution emissions and create a “pollution halo” effect, which is enhanced by command-and-control regulation but suppressed by market-based incentives. The heterogeneity analysis reveals that the 18th National Congress of the Communist Party has weakened the pollution halo effect of FDI, while the environmental effect of FDI in the eastern region is not significant, but in the middle and western regions, there is a significant pollution halo effect and a positive moderating effect of environmental regulations. Finally, further analysis reveals that FDI has a transfer effect under command-and-control environmental regulations.

Research limitations/implications

First, the main purpose of this paper is to study the relationship between FDI and pollution emissions from the perspective of heterogeneous environmental regulation. Therefore, there is no detailed discussion on their effect mechanism of them. Second, limited by data, the authors adopt the single index to measure the stringency index of command-and-control and market-based incentive environmental regulations in China. The single index may not be able to fully reflect the intensity of regional environmental regulation, so the construction of a composite indicator is necessary. These shortcomings are the focus of the authors' future research.

Practical implications

Under the guidance of high-quality development, the conclusions above can provide reference for adjusting FDI policies and improving environmental regulation policies.

Originality/value

The innovations in this paper can be summarized as the following four dimensions: First, the authors use the instrumental variable (IV) method to address endogeneity in the relationship between FDI and pollution emission, which can further ensure the robustness of the research results and increases the credibility of the paper. Second, the authors distinguish between two types of environmental regulations to investigate their moderating effect on the environmental impact of FDI. Third, the authors consider the temporal and spatial heterogeneity of both the environmental effects of FDI and the moderating effect of regulation. Last, the authors analyze the spatial spillover of environmental regulation through the study of the transfer effect.

Details

Management of Environmental Quality: An International Journal, vol. 35 no. 2
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 16 August 2019

Qiong Yao, Jinxin Liu, Shibin Sheng and Heng Fang

Drawing on the literature of eco-innovation and institutional theory, this research aims to answer two fundamental questions: Does eco-innovation improve or harm firm value in…

1729

Abstract

Purpose

Drawing on the literature of eco-innovation and institutional theory, this research aims to answer two fundamental questions: Does eco-innovation improve or harm firm value in emerging markets? and How institutional environments moderate the relationship between eco-innovation and firm value? We explicate the regulatory, normative and cognitive pillars of institutions, manifested as regulation intensity, environmental agency pressure and public pressure, respectively.

Design/methodology/approach

For this study, a cross-sectional panel data set was assembled from multiple archival sources, including data coded from the corporate annual reports and social responsibility reports, statistical yearbooks, China Stock Market Financial Database (CSMAR) and other secondary sources. A hierarchical regression method was used to test the hypotheses. The data comprised 88 firms sampled over four years. The model using feasible generalized least squares (FGLSs) to control heteroscedasticity in errors due to unobserved heterogeneity was estimated.

Findings

Empirical findings from a data set compiled from multiple archival sources reveal that both eco-product and eco-process innovation negatively relate to firm value. The interactions between eco-innovation and regulation intensity, environmental agency pressure and public pressure are positively related to firm value.

Originality/value

First, this study extends the literature of eco-innovation by investigating the impact of eco-innovation on firm value. Contrary to the conventional anecdotal evidence of the beneficial effect of eco-innovation, it was found that eco-innovation relates negatively to firm value. Second, this study develops and tests an institutional contingent view of eco-innovation by accounting for the moderating role of regulatory, normative and cognitive pressures.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 8
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 14 September 2022

Dongfang Wang, Arthur Tarasov and Huarong Zhang

The purpose of this paper is to test the relationship between environmental regulations and green total factor productivity (GTFP) of China's logistics industry. The high-factor…

Abstract

Purpose

The purpose of this paper is to test the relationship between environmental regulations and green total factor productivity (GTFP) of China's logistics industry. The high-factor input, high-energy consumption, and high-pollution emissions model of the logistics industry developed within China faces challenges from severe resource and environmental constraints. It is generally believed that environmental regulations effectively restrain pollution emissions and help protect the environment.

Design/methodology/approach

The authors employ the undesirable slack-based Malmquist Luenberger model to calculate the GTFP across the provincial logistics industry and use the mediation effect model and threshold effect model to explore the effects and mechanics of environmental transmission regulations on the GTFP.

Findings

The main results show significant regional differences in the GTFP of logistics industry across China. In the transmission path of the impact of environmental regulations on the GTFP, regional innovation capabilities have mediation effects. Regional innovation capacities have a masking effect on the transmission path of environmental regulations on accumulated technical efficiency changes (AEC) and accumulated technical changes (ATC). The threshold effect test results show a dual-threshold effect between environmental regulations and the GTFP, with environmental regulations as threshold variable. Furthermore, the impact of regional innovation capability on the GTFP has a dual-threshold effect, with environmental regulation as threshold variable.

Practical implications

First, it is advisable to plan the environmental regulation policy system thoroughly and add supporting measures to ensure the efficiency and smooth implementation of the nation's environmental policies. Second, it is important to further understand the critical role of innovation capability in improving the GTFP. Third, there is an urgent need to standardize the operating behavior and market order of the leading players in the logistics market and to improve the operational efficiency of logistics enterprises.

Originality/value

So far, a systematical study researched on effect of environmental regulation on the GTFP in logistics industry was not published. This study can provide experience for the high-quality development of the logistics industry.

Details

Kybernetes, vol. 52 no. 2
Type: Research Article
ISSN: 0368-492X

Keywords

Open Access
Article
Publication date: 1 November 2022

Dengke Chen

Trade and environment are essential issues closely related to the development of the national economy and the improvement of people’s livelihood in the new era. The Report to the…

Abstract

Purpose

Trade and environment are essential issues closely related to the development of the national economy and the improvement of people’s livelihood in the new era. The Report to the 19th National Congress of the Communist Party of China (CPC) listed the construction of a strong trading power as an important part of building a modern economic system and pollution prevention and treatment as one of the three key battles to win the decisive victory of building a moderately prosperous society in all respects. However, the relationship between trade and environmental pollution is still very controversial in the existing literature, and there is a paucity of literature on the relationship between trade and environmental pollution based on micro data.

Design/methodology/approach

This paper merged China’s Firm-Level Pollution Database with China’s Industrial Enterprise Database and China’s industry tariff rates. Additionally, by virtue of the quasi-natural experiment of China’s accession to the World Trade Organization (WTO), a difference in difference (DID) model was constructed to alleviate the endogeneity issue.

Findings

According to the results, the trade barrier decrease (trade liberalization) significantly reduces the intensity of SO2 emissions, a major pollutant of enterprises, as the intensity of SO2 emissions decreased 2.16% for each unit decrease of the trade barrier. The analysis of the mechanisms shows that the SO2 emission intensity of enterprises is mainly due to the decrease of enterprises’ pollution emission rather than the decrease of output, and the decrease of enterprises’ pollution emission is mainly caused by the enterprises’ cleaner production process rather than the end treatment of pollution emission. The decrease of coal use intensity is an important mechanism of the decrease of SO2 emission intensity caused by the decrease of trade barriers. Among the technical effects of the change of the trade barrier affecting enterprises’ pollution emission, biased technical change rather than neutral technical change dominates.

Originality/value

The findings of this paper imply that expanding openness can enhance China’s social welfare not only through the economic growth mechanisms identified in the classical literature, but also through environmental improvements. This provides useful policy insights for promoting the construction of a strong trading power and winning the battle against pollution in the new era.

Details

China Political Economy, vol. 5 no. 1
Type: Research Article
ISSN: 2516-1652

Keywords

Article
Publication date: 14 February 2023

Sheng Yao, Siyu Wei and Lining Chen

Existing studies have shown that all kinds of audit risks greatly affect audit pricing for accounting firms. However, it is still unclear whether environmental risks caused by…

Abstract

Purpose

Existing studies have shown that all kinds of audit risks greatly affect audit pricing for accounting firms. However, it is still unclear whether environmental risks caused by environmental violations lead to a high audit fee. This study aims to investigate whether accounting firms raise audit fees after client firms have violated environmental regulations or have been punished for such violations.

Design/methodology/approach

This study selects listed firms with environmental violations between 1994 and 2018 as the treatment sample and match the treatment group with a control group of firms from the same industry, of similar asset size and with no environmental violations for the same time period. Then, this study constructs a difference-in-difference (DID) model to explore the impact of firm environmental violations (or punishment for environmental violations) on the audit pricing.

Findings

This study finds that accounting firms tend to raise audit fees after client firms have violated environmental regulations or have been punished for such violations, and this increasing effect is different due to environmental regulation intensity, regional span and internal control defects. Further evidences show that environmental violations influence audit fees through financial restatement, whereas environmental punishments impact audit fees through earnings management and risk-taking.

Originality/value

This study enriches the literature on determining factors of audit fees and economic consequences of environmental violations and provides empirical supports to understand the pricing behavior of accounting firms.

Details

Managerial Auditing Journal, vol. 38 no. 5
Type: Research Article
ISSN: 0268-6902

Keywords

Open Access
Article
Publication date: 16 December 2022

Chang Li, YunSeop Hwang and Cheon Yu

The purpose of this paper is to explore the relationship between formal environmental regulation (FER) and informal environmental regulation (IER), technological innovation and…

Abstract

Purpose

The purpose of this paper is to explore the relationship between formal environmental regulation (FER) and informal environmental regulation (IER), technological innovation and employment.

Design/methodology/approach

This paper uses data from the 30 provinces of China during 2003–2015. The impacts of formal and IER and technological innovation on employment are estimated by generalized least squares, and the eastern region of China is analyzed separately.

Findings

First, both formal and IERs have different degrees of significant impact on employment, and the relationship is not a simple linear. FER has an inverted U-shaped relationship with employment, but IER has a U-shaped relationship. However, in the test including technological innovation, the results of the national sample and the eastern sample are different. In the eastern sample, the relationship between informal regulation and employment has an inverted U-shaped curve. Second, the results of model 3 and model 6 show that technological innovation has a significant negative effect on employment both in the national and the eastern region sample.

Research limitations/implications

This paper puts forward corresponding policy implications: first, in designing environmental regulations, it is necessary to consider not only the stringency but also the type of regulation. Second, environmental regulations need to be differentiated by region. Finally, when designing environmental regulations, it is necessary to consider more flexible employment policies that are contingent on the stringency of regulations, in order to prevent employment decline due to technological innovations.

Originality/value

The conclusions about the influence of environmental regulation on employment reached are not consistent in China. Most existing research studies seldom consider environmental regulations into categories and focus only on the whole environmental regulation. This paper pays attention to the influences of different types of environmental regulations on employment. It analyzes the eastern region separately to explore whether there is a difference in the effects of environmental regulations. Furthermore, this considers the effect of technological innovation as a mediator.

Details

Journal of International Logistics and Trade, vol. 21 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 7 January 2019

Cong Peng and Peng Yuan

China intends to enhance its environmental regulations, which will affect many industries, because of the serious environmental pollution that the country faces. This study aims…

Abstract

Purpose

China intends to enhance its environmental regulations, which will affect many industries, because of the serious environmental pollution that the country faces. This study aims to investigate the influence of environmental regulations on China’s provincial tourism competitiveness.

Design/methodology/approach

A vertical-and-horizontal scatter degree method is used to construct provincial-level tourism competitiveness and environmental regulation indices in China. Thereafter, a spatial econometric model is established to empirically assess the influence of environmental regulations on China’s provincial tourism competitiveness and investigate the spatial spillover effects of environmental regulations.

Findings

Environmental regulations and China’s provincial tourism competitiveness exhibit a “U”-shaped relationship, mainly because of the indirect effects of environmental regulations (spatial spillover effects). The environmental regulation indices of the majority of the provinces have crossed the turning point. Thus, improving environmental regulations has a positive effect on tourism competitiveness. This effect mainly originates from the positive spatial spillover effects.

Social implications

Tourism development plays an important role in promoting economic growth. However, increasing environmental pollution may constrain the development of tourism. Therefore, the possible influence of environmental regulations on tourism development should be understood.

Originality/value

At present, no research has explored the influence of environmental regulations on China’s tourism competitiveness. The current study considers the nonlinear effects of environmental regulations and investigates their spatial spillover effects.

Details

Nankai Business Review International, vol. 10 no. 3
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 3 April 2017

Yuhong Cao and Jianxin You

This paper aims to explore the relationship between environmental regulation, technological innovation and manufacturing quality competitiveness to provide some references for…

Abstract

Purpose

This paper aims to explore the relationship between environmental regulation, technological innovation and manufacturing quality competitiveness to provide some references for emission reduction activities and improvements in manufacturing quality competitiveness to achieve environmental protection targets and economic development as part of a win–win situation.

Design/methodology/approach

Based on the structure-behavior-performance paradigm and Grabowski’s research, a new empirical model was provided. The software, EViews 6.0, was used for econometric analysis. Regression analysis was adopted to explore the three indicators’ relationships.

Findings

First, environmental regulation can promote technological innovation effectively. Second, compared with wasted gas and wasted solids, investment in wasted water control promotes Chinese technological innovation most. Third, the impact of research and development investment, induced by environmental regulation, on manufacturing quality competitiveness is greater than that induced by non-environmental regulation. Fourth, the impact of lagged two-phase environmental regulation on manufacturing quality competitiveness is similar to that of lagged one-phase regulation.

Practical implications

The issue that Chinese manufacturing is facing is how to manage the trade-off between pollution control investment and improved quality competitiveness. This study enables managers to understand how to better implement environmental regulation initiatives while achieving environmental protection and quality competitiveness as part of a win–win situation.

Originality/value

This paper analyzes the relationships between environmental regulation, technological innovation and manufacturing quality competitiveness for the first time and provides the basic argument for integrating Chinese environmental regulation with quality competitiveness to reveal the uniqueness of the circumstances determining China’s economic development.

Details

Chinese Management Studies, vol. 11 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 10 June 2021

Shuping Cheng, Lingjie Meng and Lu Xing

The purpose of this paper is to examine the effects of energy technological innovation on carbon emissions in China from 2001 to 2016.

Abstract

Purpose

The purpose of this paper is to examine the effects of energy technological innovation on carbon emissions in China from 2001 to 2016.

Design/methodology/approach

Conditional mean (CM) methods are first applied to implement our investigation. Then, considering the tremendous heterogeneity in China, quantile regression is further employed to comprehensively investigate the potential heterogeneous effect between energy technological innovation and carbon emission intensity.

Findings

The results suggest that renewable energy technological innovation has a significantly positive effect on carbon emission intensity in lower quantile areas and a negative effect in higher quantile areas. Contrarily, fossil energy technological innovation exerts a negative correlation with carbon emission intensity in lower quantile areas and a positive effect on carbon emission intensity in higher quantiles areas.

Originality/value

Considering that energy consumption is the main source of CO2 emissions, it is of great importance to study the impact of energy technological innovation on carbon emissions. However, the previous studies mainly focus on the impact of integrated technological innovation on carbon emissions, ignoring the impact of energy technological innovation on carbon emissions mitigation. To fill this gap, we construct an extended STIRPAT model to examine the effects of renewable energy technological innovation and fossil energy technological innovation on carbon emissions in this paper. The results can provide a reference for the government to formulate carbon mitigation policies.

Details

Kybernetes, vol. 51 no. 3
Type: Research Article
ISSN: 0368-492X

Keywords

1 – 10 of over 8000