China’s green transformation through eco-industrial parks

Douglas Zhihua Zeng, Lei Cheng, Lei Shi and Wilfried Luetkenhorst

World Development, 2021, vol. 140, issue C

Abstract: China has achieved remarkable results in green transformation through the implementation of eco-industrial parks (EIPs). Why China chose EIPs as the main vehicle for green transformation? How did it do? Do the EIP interventions also contribute to the economic competitiveness? Most existing studies so far have revealed that EIPs can improve the environmental performance, however, few studies examined their impact on economic competitiveness. This paper intends to systematically analyze China’s EIP programs, and examine whether the EIP interventions have improved both their environmental and competitiveness performances as well as the correlation of these two dimensions, through empirical studies based on multiple data sources. The results largely verify the effects of both environmental and competitiveness improvements. Further correlation analysis based on a small sample, however, shows there exists a more complex relationship between competitiveness performance and environmental performance. The paper also identifies the key lessons learned in implementing China’s green transformation strategy through EIPs. The authors challenge the conventional wisdom that investing in green technologies and ensuring compliance with eco-industrial standards often leads to cost increases and loss of economic competitiveness for both individual firms and industrial zones as a whole. The findings strengthen the evidence base for Chinese policy-makers and the business case for entrepreneurs when considering green investments.

Keywords: China; Green transformation; Special Economic Zones (SEZs); Eco-industrial parks (EIPs); Circular economy (search for similar items in EconPapers)
JEL-codes: L38 L52 L60 O25 O44 Q57 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:140:y:2021:i:c:s0305750x20303764

DOI: 10.1016/j.worlddev.2020.105249

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