Environment-biased technological progress and industrial land-use efficiency in China’s new normal

Malin Song, Shuhong Wang () and Kaiya Wu
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Malin Song: Anhui University of Finance and Economics
Shuhong Wang: Ocean University of China
Kaiya Wu: Fudan University

Annals of Operations Research, 2018, vol. 268, issue 1, No 21, 425-440

Abstract: Abstract The slow growth of the Chinese economy has led to a reduced number of environmental regulations. This study aims to establish whether China’s “new normal” economy can stimulate environment-biased technological progress to improve industrial land-use efficiency. First, we set up a two-sector theoretical model where in the new normal is treated as an exogenous variable to analyze the combined effects of technological progress, industrial land-use efficiency, and environmental regulations. Then, we establish a multi-index and multi-indicator constitutive equation, in which environment-biased technological progress is taken as an intermediate variable. The results show that the effects of weak environmental regulations on environment-biased technological progress are not significant and that China’s new normal economy can stimulate the progress of clean technology, thereby improving industrial land-use efficiency. Finally, foreign direct investment restricts the improvement of industrial land-use efficiency.

Keywords: New normal; Environment-biased technological progress; Industrial land-use efficiency; Multi-index and multi-indicator constitutive (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (15)

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DOI: 10.1007/s10479-016-2307-0

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