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

Linge Yang

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Environmental Regulation; Sustainability; Command-and-control; Porter’s hypothesis (search for similar items in EconPapers)
JEL-codes: Q53 Q56 Q58 (search for similar items in EconPapers)
Date: 2024-09-11
New Economics Papers: this item is included in nep-ene
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