Investigating the Effects of Environmental Regulation on Industrial Ecological Efficiency in China Using a Panel Smooth Transition Regression Model

Guokui Wang (), Xiaojia Guo, Guoqin Wu and Yijia Zhu
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Guokui Wang: College of Tourism, Xinyang Normal University, Xinyang 464000, China
Xiaojia Guo: College of Geographical Science, Shanxi Normal University, Taiyuan 030031, China
Guoqin Wu: College of Tourism, Xinyang Normal University, Xinyang 464000, China
Yijia Zhu: College of Tourism, Xinyang Normal University, Xinyang 464000, China

Sustainability, 2023, vol. 15, issue 21, 1-18

Abstract: Environmental regulation (ER) is a crucial tool used by governments to intervene in the environmental practices of enterprises, and it is recognized as a significant avenue to impact industrial ecological efficiency (IEE). This study uses the superefficiency SBM model to determine provincial IEE scores. Then, a panel smooth transition regression (PSTR) model is used to explore the effects of ER on IEE transition at different stages of economic growth. The main findings are as follows: Firstly, China’s IEE showed an overall upward trend, with small increments over the past two decades. Regions with higher IEE were mainly located in the east, while those with lower IEE were mostly in the less economically developed west. Secondly, the PSTR model revealed that ER had varying impacts on IEE at different stages of economic growth. ER positively influenced IEE in the early stages of economic growth. However, after surpassing the threshold of economic growth, ER began to contribute to reducing IEE scores. In addition to these findings, this study proposes a series of policy recommendations to strengthen IEE.

Keywords: industrial ecological efficiency; environmental regulation; economic growth; panel smooth transition regression (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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