Advertisement

Natural Hazards

, Volume 91, Issue 2, pp 473–489 | Cite as

The impact of environmental regulation on the coordinated development of environment and economy in China

Original Paper

Abstract

The contradiction between environmental protection and economic development has become an important issue in China. Environmental regulation, as a vital content of public regulation, is an effective approach to rectify market failure. Thus, studying the impact of environmental regulation on the coordinated development between environment and economy is beneficial to design the most suitable environmental management system for Chinese government. Based on the theory of regulation economics and industrial organization, this paper incorporates environmental regulation policy in the traditional SCP paradigm and analyzes the conduction mechanism of market structure and market behaviors on the coordinated development between environment and economy. With the empirical analysis, we find the existence of an EKC curve, which means that tightening the environmental regulation is an effective means of guaranteeing economic growth and optimizing environmental quality. Eventually, we point out the problems existing in China’s current environmental regulation system and design a new one which is more suitable for the current economic development stage of China.

Keywords

SCP Environment regulation Environment Kuznets curve Conduction mechanism 

Notes

Acknowledgements

The authors gratefully acknowledge the financial support from the National Natural Science Foundation of China (Grant No. 71173141). We also thank the anonymous referees for their helpful suggestions on our paper.

References

  1. Adetutu M, Glass AJ, Kenjegalieva K, Sickles RC (2015) The effects of efficiency and TFP growth on pollution in Europe: a multistage spatial analysis. J Prod Anal 43(3):307–326CrossRefGoogle Scholar
  2. Charfeddine L, Khediri KB (2015) Financial development and environmental quality in UAE: cointegration with structural breaks. Renew Sustain Energy Rev 55:1322–1335CrossRefGoogle Scholar
  3. Ford JA, Steen J, Verreynne ML (2014) How environmental regulations affect innovation in the Australian oil and gas industry: going beyond the porter hypothesis. J Clean Prod 84(1):204–213CrossRefGoogle Scholar
  4. Grossman GM, Krueger AB (1991) Environmental impacts of a North American Free Trade Agreement. Soc Sci Electron Publ 8(2):223–250Google Scholar
  5. Komen MHC, Gerking SD, Folmer H (1997) Income and environmental R&D: empirical evidence from OECD countries. Environ Dev Econ 2(4):505–515CrossRefGoogle Scholar
  6. Lagrange H, Jay-Allgmand CF (2016) Economic and environmental comparison of grouping strategies in coordinated multi-item inventory systems. J Oper Res Soc 67(3):421–436CrossRefGoogle Scholar
  7. Lanjouw JO, Mody A (1996) Innovation and the international diffusion of environmentally responsive technology. Res Policy 25(4):549–571CrossRefGoogle Scholar
  8. Lawn P (2013) Globalisation, economic transition and the environment. Edward Elgar, LondonCrossRefGoogle Scholar
  9. Schmutzler A, Goulder LH (1997) The choice between emission taxes and output taxes under imperfect monitoring. J Environ Econ Manag 32(1):51–64CrossRefGoogle Scholar
  10. Suri V, Chapman D (1998) Economic growth, trade and energy: implications for the environmental Kuznets curve. Ecol Econ 25(2):195–208CrossRefGoogle Scholar
  11. Weitzman ML (1974) Prices vs quantities. Rev Econ Stud 41(4):477–491CrossRefGoogle Scholar
  12. Wu YM, Tian B (2012) The extension of regional environmental Kuznets curve and its determinants: an empirical research based on spatial econometrics model. Geogr Res 31(4):627–640Google Scholar
  13. Yang CH, Tseng YH, Chen CP (2012) Environmental regulations, induced R&D, and productivity: evidence from Taiwan’s manufacturing industries. Resour Energy Econ 34(4):514–532CrossRefGoogle Scholar
  14. Yuan YJ, Liu L (2013) Environmental regulation and economic growth: a research based on different kinds of economic regulation. Econ Rev 1:27–33 (in Chinese) Google Scholar
  15. Zárate-Marco A, Vallés-Giménez J (2015) Environmental tax and productivity in a decentralized context: new findings on the porter hypothesis. Eur J Law Econ 40(2):313–339CrossRefGoogle Scholar
  16. Zhang J, Wu GY, Zhang JP (2004) The estimation of China’s provincial capital stock: 1952–2000. Econ Res 10:35–44 (in Chinese) Google Scholar

Copyright information

© Springer Science+Business Media B.V., part of Springer Nature 2017

Authors and Affiliations

  1. 1.School of EconomicsShanxi University of Finance and EconomicsTaiyuanChina

Personalised recommendations