The Linkage Mechanism between Environment-Related Rules and Environment-Related Efficiency of Industries in China: An Analysis Based on the Adaptive Semi-Parametric Panel Model

Di Wang
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Di Wang: School of Government, Peking University, Beijing 100871, China

Sustainability, 2021, vol. 13, issue 11, 1-26

Abstract: This study employed the adaptive semi-parameter model to determine the effects of environment-related rules (environment-related rules refer to laws and regulations in relation to environmental protection) on environment-related efficiency (environment-related efficiency refers to the environmental efficiency of a wide range of industries). In addition, the threshold regression model was employed to determine the industry threshold effect of environment-related rules on environment-related efficiency. The following conclusions were primarily drawn: (1) A U-shaped curve relationship was identified between the effect of environment-related rules and the environment-related efficiency of the broader national industry; (2) A threshold effect is exerted on environment-related efficiency, and under the effect exerted by environment-related rule below the lower limit of the optimal interval, environment-related rule policies cannot play a corresponding role, while the effect of environment-related rules is high. When the upper limit of the optimal interval is set, environment-related rules will exert extensively strong effects, which leads to the unsustainable development of the industry and distorts the industry’s development. The government is required to roll out different environment-related rule policies in accordance with the industry differences and the development stages of respective industries, fully exploit such environment-related rule policies for industries and technologies, optimize the environment-related rules system, and harmoniously advance industries, the economy, and the environment. Given the empirical results, it is critical to enhance the effect exerted by environment-related rules in the mining and manufacturing industries, elevate their technical level, and develop a positive relationship between the effect exerted by environment-related rules and environment-related efficiency enhancements. While China’s current environment-related rule policy imposes no discrimination between pollution-intensive industries and cleaner production industries, these industries should be treated differently in the days ahead.

Keywords: environment-related rule; environment-related efficiency; adaptive semi-parametric panel model; threshold model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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