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The heterogeneous impact of environmental regulations on low‐carbon economic transformation in China: Empirical research based on the mediation effect model

Xinli Wang and Yuansheng Huang

Greenhouse Gases: Science and Technology, 2021, vol. 11, issue 1, 81-102

Abstract: The heterogeneous impacts of environmental regulation on China's low‐carbon economic transformation has attracted much attention. This paper uses the provincial panel data of China as the sample, by constructing a dynamic intermediary effect model, this paper empirically tests the intermediary effect and path difference of different environmental regulation policies on carbon dioxide emission reduction. The study found that whether China's environmental regulatory policies can influence the intensity of carbon emissions through mediation effects is closely related to the type of policy. China's ordered environmental regulation policy can force technological innovation to indirectly curb carbon emissions, but a high carbon industry structure indirectly promotes carbon emissions. Carbon trading pilots have a negative intermediary effect on carbon emissions through industrial structure and technological innovation. The eastern mainly directly suppress carbon emissions through the market incentive policy, the central mainly relies on the command‐controlled environmental policy to achieve backward emission reduction, the western produces a green paradox. The Chinese government must fully consider the heterogeneity of environmental policies constantly improve and optimize the combination of environmental regulation policies. © 2020 Society of Chemical Industry and John Wiley & Sons, Ltd.

Date: 2021
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