The Relationship between Trade Liberalization and Environmental Pollution across Enterprises with Different Levels of Viability in China

Shufang Zheng, Fengxiu Zhou and Huwei Wen

Emerging Markets Finance and Trade, 2022, vol. 58, issue 8, 2125-2138

Abstract: This study investigates the varying effects of trade liberalization on environmental pollution from the perspective of enterprise viability. We find that trade liberalization significantly reduces pollution emissions, and the environmental effect on low viability and high viability enterprises varies. Our results also indicate that the emissions trading policy enhances the abating effect of trade liberalization on environmental pollution in both high viability and low viability enterprises, whereas the voluntary environmental policy reduces this effect. This study not only extends the applicability of new structural economics but also presents empirical evidence for further market opening and actions to improve the environment.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:58:y:2022:i:8:p:2125-2138

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DOI: 10.1080/1540496X.2021.1961738

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