Economic loss and environmental gain from regulation: examining the two-fold effect using data from Chinese cities

Chu Wei

Letters in Spatial and Resource Sciences, 2022, vol. 15, issue 3, No 7, 423-434

Abstract: Abstract Environmental regulations can have a two-fold effect on the economy and environment. Output lost due to environmental regulation has been extensively examined in the literature; however, studies on the consequent environmental benefits are scarce. This study models the dual regulatory effect of environmental regulation on the economy and environment using a non-parametric data envelopment analysis framework. An analogous environmental regulatory efficiency index that accounts for both effects is presented. A dataset covering 104 Chinese prefecture cities in 2008 is employed for illustration. The efficiency index is estimated and compared among three regions of China. Moreover, the positive nexus between regulatory GDP cost and CO2 abatement is empirically examined and confirmed. When setting regulatory policies, this index can help policymakers quantify the trade-offs between environmental benefits and economic costs.

Keywords: Regulatory economic cost; Environmental gain; Weak disposability; Free disposability; Regulated technology; Unregulated technology; O44; Q51; C61 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12076-021-00274-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:lsprsc:v:15:y:2022:i:3:d:10.1007_s12076-021-00274-5

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/12076

DOI: 10.1007/s12076-021-00274-5

Access Statistics for this article

Letters in Spatial and Resource Sciences is currently edited by Henk Folmer and Amitrajeet A. Batabyal

More articles in Letters in Spatial and Resource Sciences from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().