Environmental Regulation, Resource Misallocation, and Ecological Efficiency

Shuhong Wang, Xiaoli Sun and Malin Song

Emerging Markets Finance and Trade, 2021, vol. 57, issue 3, 410-429

Abstract: This study presents an ecological efficiency analysis by combining the potential of every area in China in terms of emissions reduction and energy savings with resource allocation. Changes in ecological efficiency are calculated. Environmental regulation and resource misallocation factors are introduced to identify key factors influencing ecological efficiency. The results indicate a U-shaped relationship between provincial relative environmental regulation strength and resource misallocation degree, where regulation could relieve resource misallocation somewhat and improve ecological efficiency. However, after the curve’s turning, ecological efficiency deteriorates. The study expands the research boundary of economics and ecology and provides a reference for policy-makers.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:57:y:2021:i:3:p:410-429

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DOI: 10.1080/1540496X.2018.1529560

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